NFP: USD negative arguments weighed more heavily and dominated – Commerzbank
|The Dollar eased quite notably following the publication of Nonfarm Payrolls. Ulrich Leuchtmann, Head of FX and Commodity Research, analyzes USD reaction.
Gleanings from the US labor market report
The USD bears were able to refer to the fact that the NFP, the number of new jobs outside farming, was much lower than the vast majority of analysts had expected and that the previous month’s result also had to be revised downwards.
And the USD bulls were able to state that major surprises in the NFP data are not unusual and that 187K new jobs were quite good going, that the Unemployment Rate recorded a surprise MoM fall and that average hourly earnings rose a little more significantly than expected.
Anyone who thinks that the USD positive arguments were not only more numerous but also more convincing would have been in the minority on the FX market on Friday.
EUR/USD had traded in the lower 1.09 area prior to the publication, DXY above 102.50. Both levels were close to the extremes of the previous week. It therefore cannot come as a surprise that the USD negative arguments weighed more heavily and dominated – despite the doubtlessly good arguments pointing in the other direction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.