EUR/USD dipped to the lowest level in more than a decade during Friday’s trading session after US nonfarm payrolls exceeded even optimistic forecasts. The data led to speculations that the Federal Reserve may start its monetary tightening cycle earlier. Such talks are very bullish for the US dollar.
Nonfarm payrolls grew by 295k in February while experts predicted the same 239k growth as in January (revised down from 257k.) Unemployment rate fell from 5.7% to 5.5% compared to the median forecast of 5.6%. (Event A on the chart.)
Trade balance deficit shrank to $41.8 billion in January down from $45.6 billion in December. The actual value was not far from the forecast of $41.3 billion. (Event A on the chart.)
Consumer credit rose by $11.6 billion in January, less than was forecast ($11.4 billion.) The previous month’s rate of increase was revised from $14.7 billion up to $17.8 billion. (Event B on the chart.)
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