OctaFX | OctaFX Forex Broker
Open trading account

US dollar fails to benefit from NFP, EUR/USD holds above 1.0900

FXStreet (Córdoba) - The euro managed to hold above 1.0900 and even climbed to retest recent highs as the dollar failed to benefit from a better than expected US nonfarm payrolls report.

Expectations of a December rate hike by the Fed remain in place following a solid jobs report and recent comments from Yellen who said delaying the lift-off could lead to abrupt tightening later. However, US dollar remained largely unchanged as most of those expectations have been already priced in.

EUR/USD is currently trading at 1.0925, virtually unchanged on Friday after staging a steep rally, of more than 3%, the previous day as ECB fell short of expectations of more aggressive easing measures.

EUR/USD levels to watch

In terms of technical levels, next resistances could be faced at 1.0980 (post-ECB, Dec 3 high), 1.1000 (psychological level) and then 1.1034 (200-day SMA). On the flip side, immediate supports are seen at 1.0854 (Dec 4 low), 1.0700/1.0698 (psychological level/21-day SMA) and not much until 1.0500 (psychological level/Dec 3 low).

Strong jobs growth in November confirms December rate hike possibility

The U.S. Bureau of Labor Statistics reported unemployment rate held steady at a 7-1/2-year low of 5 per cent in November. Total nonfarm payroll employment increased by 211,000 in November. Economists had estimated nonfarm payrolls to rise 200,000 in November and the unemployment rate to steady at 5.0 percent. Job gains occurred primarily in the construction, professional and technical services, and health care sectors. As expected there was job loss in the mining and information sector. Today’s data showed confidence in the jobs market has been restored. The jobless rate is seen as consistent with full employment.
Read more Previous

GBP/USD hovering over 1.5100

The sterling has left the area of 1.5150 vs. the greenback following US Payrolls today, with GBP/USD now returning to the 1.5100/10 band...
Read more Next
Start livechat