EUR/USD refreshes session tops and retreats on mixed US employment details

   “¢   US economy added only 20K new jobs in February, down from upwardly revised 311K previous.
   “¢   Unemployment rate drops to 3.8% and average hourly earnings also better market expectations.
   “¢   Upbeat US housing market data further extend some support to the USD and capped further gains.

The EUR/USD pair built on its steady intraday climb and spiked to fresh session tops, around the 1.1235-40 region on awful headline NFP print, albeit quickly retreated few pips thereafter.

The latest employment details showed that the US economy added only 20K new jobs in February, down from previous month’s upwardly revised reading of 311K and worse than consensus estimates pointing to 180K new jobs.

However, the disappointing reading, to a larger extent, was offset by a drop in the unemployment rate to 3.3% from 4.0% previous and stronger than expected wage growth data, showing that average hourly earnings rose 0.4% m/m and 3.4% y/y during the reported month.  

The readings were better than 0.3% m/m and 3.3% y/y rates expected, which coupled with better than expected US housing market data – building permits and housing starts, extended some support to the US Dollar and kept a lid on any runaway rally, at least for the time being.

Technical levels to watch