Analysis EUR/USD is being sold again

eu-l20After a short pause, the major currency pair is being sold again.

“Bears” continues dominating in EURUSD on Monday. The current quote for the instrument is 1.1500.

As it usually happens at the beginning of the month, last Friday the USA published several macroeconomic reports with September numbers on the labor market, which turned out to be rather mixed and complicated. The Non-Farm Employment Change was 134K after being 270K in August and against the expected reading of 185K. It’s rather okay that the indicator is being corrected after the strong previous number, because in September the USA suffered from hurricanes, which influenced both the manufacturing sector and the consumption. This this particular case, the report says that the tertiary industry was really hurt by decline in the consumer’s demand. On a number of occasions, the bad weather reduced the employment in shops, cafes, and hotels.

However, the Unemployment Rate fell from 3.9% in August to 3.7% in September. This was probably a synergistic effect from the set of statistical data, because the ADP report published earlier was pretty confident.

The Average Hourly Earnings added 0.3% m/m in September, the same as expected. However, on YoY the indicator expanded only by 2.8% after adding 2.9% I the previous month.

One can’t say that the numbers were negative, but they still raised some questions, that’s why investors stopped supporting the American currency for a while. However, after they “processed” the data and the US bonds profitability started increasing, the USD resumed its growth.

Orgin: RoboForex

Leave a Reply