EUR/USD drops below 1.0750 as US Nonfarm Payrolls beat expectations

The EUR/USD spikes down after better-than expected US payrolls data.
Nonfarm payrrolls and hourly earnighs increase bayond expectatios in November.
US data cools holes of Fed cuts and sends the USD higher.

Guillermo Alcala FXStreet

The Euro has dropped more than 40 pips to hit a fresh three-week low below 1.0750 as the US Nonfarm Payrolls report has cooled hopes of Fed rate cuts in early 2024.

Nonfarm Payrolls data cools hopes of Fed cuts

The US economy created 199,000 jobs in November, well above the 1800,00 reading forecasted by market analysts, and up from the 150,000 jobs created in October.

Beyond that, hourly earnings increased at a 0.4% pace, somewhat faster than the 0.3% expected by the market. This reveals that the US labour market remains strong, tackling the doubs triggered by the weak JOLTs and ADP and dampening investors' hopes that the Fed might start easing its monetary policy in March.

The market reaction has supported the US Dollar, sending the EUR/USD to fresh lows below 1.0750 although the pair has trimmed some losses shortly afterwards.

Technical levels to watch

EUR/USD

Overview
Today last price	1.0766
Today Daily Change	-0.0030
Today Daily Change %	-0.28
Today daily open	1.0796

Trends
Daily SMA20	1.0866
Daily SMA50	1.07
Daily SMA100	1.0767
Daily SMA200	1.0822

Levels
Previous Daily High	1.0818
Previous Daily Low	1.0755
Previous Weekly High	1.1017
Previous Weekly Low	1.0829
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.0794
Daily Fibonacci 61.8%	1.0779
Daily Pivot Point S1	1.0761
Daily Pivot Point S2	1.0727
Daily Pivot Point S3	1.0699
Daily Pivot Point R1	1.0824
Daily Pivot Point R2	1.0852
Daily Pivot Point R3	1.0886

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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