USD Trembles on Earnings, but New Forex Trades Appear
Skerdian Meta • 1 min read
The US employment report came out more or less as expected, apart from a few hiccups. Earnings increased, which is a good thing. But they didn’t meet expectations, which were for a 0.3% increase against the actual 0.2%.
Payrolls (NFP) came at 228K which is about 30k above expectations. That’s slightly positive but it is counterbalanced by the miss in expectations. The unemployment rate stood steady at 4.1% and I don’t expect any big changes soon.
Average earnings (wages) are obviously the most important factor in this report at the moment. They translate into higher sales and higher inflation in general, which is what the FED is looking for right now. But, the last month was revised lower to -0.1%. At 2.5%, the yearly number also missed expectations which were for a 2.7% reading.
The retrace higher is almost done in EUR/USD
So, the US Dollar is going through a selloff period with EUR/USD jumping more than 30 pips after the release. This jump is taking us to some interesting levels and we are getting ready to buy the Buck. I am looking at selling EUR/USD and/or AUD/USD, so hang around guys.