Today, EUR/USD has been hit hard by US nonfarm payrolls that had turned out to be even better than optimistic predictions by market experts. As a result, the dollar surged against the basket of major currencies, one of which is the euro. Consumer credit data released by the end of the trading session added to the strength of the US currency, being better than forecasts.
Nonfarm payrolls demonstrated amazing growth in May, rising by 280k. Ahead of the report, analysts had expected growth to be close to the previous month’s rate — 221k. Despite the huge increase, the unemployment rate unexpectedly ticked up from 5.4% to 5.5%. Average hourly earnings rose 0.3%. This is compared to the median forecast of 0.2% and the previous month’s increase of 0.1%. (Event A on the chart.)
Consumer credit increased by $20.5 billion in April from March, exceeding the analysts’ projections of growth by $16.5 billion. Furthermore, the March’s advance was revised from $20.5 billion to $21.3 billion. (Event B on the chart.)
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