Home EUR/USD refreshes weekly lows post-NFP, but lacks follow-through on softer wage growth data
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EUR/USD refreshes weekly lows post-NFP, but lacks follow-through on softer wage growth data

   “¢   The US economy added 263K new jobs in April; unemployment rate drops to 3.6%.
   “¢   Softer average hourly earnings data does little to provide a strong boost to the USD.
   “¢   Market participants now eye Fedspeaks for some meaningful trading opportunities.

The EUR/USD pair maintained its offered tone through the early European session and refreshed weekly lows, below mid-1.1100s post-NFP.

The US monthly jobs report showed that the US economy added 263K new jobs during the month of April, much better than the previous month’s headline print of 196K and surpassing even the most optimistic estimates.  

Adding to this, the unemployment rate unexpectedly declined to 3.6% from 3.8% previous, though was partly offset by slightly weaker than expected wage growth data. In fact, average hourly earnings grew by 0.2% m/m as against 0.3% expected and held the yearly rate to 3.2% during the reported month.

The wage growth data did little to reaffirm the Fed Chair Jerome Powell’s comments made that subdued inflation appears to be transitory, albeit a modest uptick in the US Treasury bond yields provided a goodish lift to the US Dollar and kept exerting downward pressure on the major.

With today’s slide for the third straight session, the pair has now dropped back closer to YTD lows and remained on track to end the week on a downbeat note – possibly for the third consecutive week of losses.  

Moving ahead, scheduled speeches by a slew of influential FOMC members will now be looked upon to reinforce Powell’s view on transitory low inflation, which might eventually influence the USD price dynamics and further collaborate towards producing some meaningful trading opportunities on the last day of the week.  

Technical levels to watch


 

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