Eurusd Down Post Nfp Report

Eurusd Down Post Nfp Report by Ashly Chole last updated on May 24, 2024

Eur/Usd Down By 0.13% Post Nfp Report

After the release of stronger-than-expected NFP in March, a 0.13% decline was seen in the EUR against the USD. The March report was mostly positive for the greenback as it has further dimmed the prospects of a June rate cut.

For now, the EUR/USD is trading near 1.0822 and has retreated from 1.0847, the daily high made on Friday. The bigger picture is that a strong US labor market is bullish for the greenback and bearish for the EUR.

According tot he US BLS, a lot more jobs were added to the economy during March. In fact, the numbers were so high that they even beat the forecasts and the previous readings.

Unemployment Situation Improves In The Us

Additionally, the unemployment rate has also shown a change of -0.1%, which suggests that the number of unemployed people continues to shrink. As for the average hourly earnings, it remained in line with the forecast.

Post-NFP release led to around 0.155% jump in the DXY while the bond yields have shown a jump of 4.5 - 5.0 bps. Similarly, the 10-year bond yield is now around 4.365% which also shows that the USD is having a field day.

Elsewhere, the Fed, Thomas Barkin, believes that the inflation's progress toward the downside is uneven so far. As for any comments on monetary policy, there were none.

If we look at the European side, the German Factory orders have shown a +0.2% improvement when compared with January. Additionally, the EU retail sales have shown a change of -0.5% on an M/M basis.

On the EUR/USD technical chart, a chart pattern known as 'evening star', which means a revisit towards the 1.08 handle, is highly likely.

The momentum seen in the EUR/USD is geared towards the downside for now. Additionally, the RSI is also filling below the 50 line, which is not a good signal for the bulls.

The bottom line is that EUR/USD is going through a selling phase as the USD has gained strength once again after the NFP.