Nonfarm Payrolls Drag EUR/USD Down

Trading was choppy this week as the euro-dollar currency pair was moving one day up and other day down. The Friday’s trading session continued the trend as EUR/USD went down after Thursday’s gains. The reason for the drop was stellar US nonfarm payrolls.
Nonfarm payrolls grew by 257k in January, exceeding the consensus analysts’ forecast of 236k. Moreover, the December’s reading was massively revised from 252k to 329k. At the same time, the unemployment rate ticked up from 5.6% to 5.7% unexpectedly. (Event A on the chart.)
Consumer credit advanced $14.7 billion in December, above the revised November rate of $13.5 billion ($14.0 billion before the revision) but below the predicted value of $15.1 billion. (Event B on the chart.)


If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *