THE EURO MOVES ABOVE THE 1.2000 LEVEL AS THE GREENBACK FALTERS
EURO MOVES ABOVE 1.2000 LEVEL
The EURUSD pair moved above the 1.2000 level for the first time in more than two and a half years, hitting 1.2070, as foreign exchange traders bought the single currency and aggressively sold the U.S dollar.
Investors pushed the euro to its highest trading level since early January 2015, after European Central Bank President Mario Draghi failed to address the recent appreciation of the euro currency, in his speech at the Jackson Hole Symposium.
SOFTER AUGUST JOBS REPORT
The U.S Nonfarm payrolls job report for the month of August came in weaker than analysts had been expecting, showing that 156,000 jobs had been created in the U.S economy, far weaker than 185,000 investors had been hoping for.
Data inside the August jobs report, showed that average hour earnings declined to 0.1 percent, from 0.2 percent and the U.S unemployment rate ticked up, to 4.4 percent. Overall it was a very weak report, and the market reaction saw the U.S dollar index declined sharply.
U.S SECOND QUARTER GDP UPGRADED
United States second quarter gross domestic product was upwardly revised higher to three per cent on an annual basis this week, according to the U.S Commerce department, much better than the 2.6 per cent growth reported last month.
Growth last quarter was the best since the first quarter of 2015 and followed a 1.2 per cent pace in the January-March period, and reflected robust U.S consumer spending as well as strong business investment.
CHINESE PMI MANUFACTURING BEAT
The Chinese manufacturing Purchasing Managers' Index for the month of August, came in at 51.7, beating consensus expectation. Economist predicted that Chinese manufacturing growth in August would be slower than the previous months 51.4 figure, and expected a weaker 51.3 reading.
The better than expected Chinese manufacturing reading was driven by strong industrial production, and a rise in new factory orders, which was attributed to domestic demand in China, according to analysts.