Close to the release of the all-important Non-Farm Payrolls, the Euro got some bad news and is now closer to the bottom of the range. Here’s an update.
The European Unemployment Rate disappointed with a rise to 10%. This rise was worse than early expectations for a rise to 9.9%. We also found out that last month’s figure was already at 9.9%. The figure was revised from 9.% to 9.9%.
Update: NFP fell by 85,000 – disappointment. But last month’s figure saw a rise of 4,000 – the first in two years. EUR/USD is rising but hesitating. Here’s my reaction post: US Gained Jobs In November – Dollar Bulls Not Giving Up
Like this story? Vote for it on Forex Factory.
This isn’t another disappointing figure. This double digit unemployment rate weighs heavily on Europe, especially on its flanks. Spain’s unemployment rate is at almost 20%. But this isn’t only a Spanish problem. Every 1 in 10 is unemployed. This figure perfectly matches the current American unemployment rate.
Technical Look: EUR/USD is now trading under 1.43, very far from the resistance range at 1.4444 to 1.4480. In the past weeks, EUR/USD was supported by 1.42 and resisted by this range. It’s now closer to the bottom of the range. More on the pair in the EUR/USD forecast.
Also German Industrial Production, released just now, disappointed with a small rise of 0.7%, less than 1.1% that was predicted. EUR/USD failed to break earlier this week, as it got good figures.
With these bad numbers, it’s weakness is clearly seen. EUR/USD needs a very bad Non-Farm Payrolls figure in order to rise.
Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.Get the 5 most predictable currency pairs