“¢ The US economy added 213K new jobs in June, better than 195K anticipated.
“¢ Unemployment rate ticks higher and exerts additional pressure on the USD.
“¢ Softer wages data adds to the USD selling bias and provides an additional boost.
The EUR/USD pair built on its positive momentum beyond the 1.1700 handle and spiked to fresh multi-week tops during the early North-American session.
The already weaker US Dollar, on the back of escalating US-China trade tensions, was further weighed down by today’s mixed jobs report, coming in to show that the unemployment rate rose to 4.0% from 3.8% previous.
Adding to the disappointment, average hourly earnings, which have gained more traction in the recent past, fell short of expectations and rose 0.2% on monthly basis (steady at 2.7% y/y) and exerted some fresh selling around the greenback.
The negative details largely negated a better-than-expected headline NFP print, which showed that the US economy added 213K new jobs during the month of June as compared to 195K expected and an upwardly revised previous month’s reading of 244K.
The pair jumped to 50-day SMA hurdle near the 1.1745-50 region, with the recent report that some ECB members believe that raising rates by the end of 2019 would be too late supportive of the ongoing up-move.
Technical levels to watch
A follow buying interest has the potential to continue lifting the pair towards reclaiming the 1.1800 handle before eventually darting towards pre-ECB swing high resistance near mid-1.1800s.
On the flip side, weakness back below the 1.1700-1.1690 region now seems to find some support near mid-1.1600s, which if broken might prompt some aggressive selling and accelerate the fall back towards the 1.1600 handle.
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