EUR/USD falls towards 1.1900 handle post-NFP
- The Non-Farm Payroll came below expectations at 164K versus the 192K expected while wages’ growth also disappointed at 2.6% YoY.
- EUR/USD got an initial boost close to 1.2000 to then fall toward 1.1900.
The EUR/USD is trading at around 1.1920 down 0.56% on Friday.
The US Non-Farm Payrolls report for April was a disappointment on the headline with only 164,000 new jobs added versus 192,000 expected. Wages also disappointed with 2.6% against 2.7% expected for the yearly reading to April and 0.1% month-on-month versus THE 0.2% expected. The unemployment rate fell to 3.9% versus 4% expected which is seen as positive.
Initially, the US dollar reacted negatively but it was short-lived. Just after the release EUR/USD rose toward 1.2000 but then fell back as bears are eyeing the 1.1900 at the time of writing.
Investors might think that the Fed is not that concerned at this point. The NFP report was disappointing but not an outright disaster. Easter holiday effect might have been in play as well.
EUR/USD 4-hour chart
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The trend is bearish. Supports are seen at 1.1817 and at 1.1741 swing lows while resistances are seen at 1.1937 swing low and at 1.2000 figure.
Author
Flavio Tosti
Independent Analyst
