Eurusd Drops On Strong Nfp Report

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Eurusd Drops On Strong Nfp Report

Eur/Usd Drops To 1.0800 On Strong Nfp Report

stronger-than-expected NFP report has lent support to a weaker US Dollar. As a result, the EUR/USD has turned course and is now on a bearish path.

According to the NFP report, 300K jobs were generated in January 2024, which suggests a strong labour market. After the news, the EUR/USD lowered and touched the 1.0791 handle. Although the pair has gained a few pips, it is still near the 1.08 handle.

335,000 Jobs In January, According To Nfp

The bottom line is that January's NFP report has crushed any of the forecasts made by the experts. At the same time, it has also given more time to the Fed as it doesn't have to hurry toward the rate cuts.

The NFP report for December showed 216K jobs, while January was a surprise with 353K jobs... However, the LBS also revised December's reading to 333K. January's reading shows a decent upside, which is a good sign for the US Dollar.

The data also showed that the unemployment rate during January was 3.7%, while the average hourly earnings went up from 0.4% to around 0.6%.

While the greenback enjoys a good NFP report, the US equities did not share the same sentiment. After the NFP release, the equities turned lower as the timeline for rate cuts was further pushed away. The bond yields rejoiced with the report and added ten bps, sending the rate beyond 4%.

Now that the NFP is done, the markets look toward the Factory Orders and the consumer sentiment report from the University of Michigan.

Experts have added that the EUR/USD's technical overviews suggest that more downside is ahead as the 200 EMA was lost to the bears. Looking ahead, the 1.0800 will serve as a roadblock for the sellers. But if this level is conquered, the next stop will be 1.0782 and the 1.0724 - 1.0700 area.

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