EUR/USD Grows After Volatility Caused by Employment Report

EUR/USD benefited from the uncertainty and volatility caused by the US employment report that was released today. At first, it was considered as dollar-positive, but after two hours of trading, the market participants decided that the report was dollar-negative and proceeded to buy EUR/USD.
Nonfarm payrolls rose by 215k in July. The value came out worse than the median forecast of 225k and than June’s 231k (revised up from 223k). Average hourly earnings also trailed the analysts’ expectations — they added only 2.1% vs. 2.3% forecasted annual growth. Overall, the report did not signal anything bad for the US economy, but it may still mean that there will be no interest rate hike in September. (Event A on the chart.)
Consumer credit rose by $20.7 billion in June — significantly faster than the median forecast of $17.0 billion growth and $16.5 billion gain reported for May (revised up from $16.1 billion). (Event B on the chart.)


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