The EUR/USD pair has been trading slightly higher, up by around 0.1%, as it rallied back into resistance after traveling between 1.0966 and 1.1047 on the day so far. The US Dollar initially rallied on Friday after the release of the Nonfarm Payrolls report which showed that US employers had added more jobs than expected in April. In addition to this, wages also grew more than expected.
Nonfarm Payrolls Report Shows Job Growth
According to the Nonfarm Payrolls report, US employers added 266,000 jobs in April, which was significantly higher than the estimated 978,000 jobs. This marked a significant improvement from the previous month’s report which showed only 770,000 jobs added. The unemployment rate also increased slightly to 6.1% from the previous 6.0% level.
Wages Grow More Than Expected
One of the most significant takeaways from the Nonfarm Payrolls report was the growth in wages. The average hourly earnings for all employees rose by 0.7% from the previous month, which was higher than the estimated 0.0% growth. This was also a significant improvement from the previous month’s report which showed a 0.1% decline in wages.
US Dollar Initially Rallies
The US Dollar initially rallied following the release of the Nonfarm Payrolls report as investors reacted positively to the job growth and higher wages. However, the rally was short-lived as the EUR/USD pair rallied back into resistance after traveling between 1.0966 and 1.1047 on the day so far.
EUR/USD Rallies Back into Resistance
The EUR/USD pair has been trading slightly higher, up by around 0.1%, as it rallied back into resistance after the initial surge in the US Dollar. The pair has been trading in a range between 1.0966 and 1.1047 on the day so far, with resistance at the 1.1050 level.
Conclusion
In conclusion, the Nonfarm Payrolls report showed a significant improvement in job growth and wages, which initially led to a surge in the US Dollar. However, the EUR/USD pair rallied back into resistance, indicating that investors remain cautious. As the global economy continues to recover from the pandemic, it will be interesting to see how currencies react to economic data in the coming months.
