- The EUR/USD spikes down after better-than expected US payrolls data.
- Nonfarm payrrolls and hourly earnighs increase bayond expectatios in November.
- US data cools holes of Fed cuts and sends the USD higher.
The Euro has dropped more than 40 pips to hit a fresh three-week low below 1.0750 as the US Nonfarm Payrolls report has cooled hopes of Fed rate cuts in early 2024.
Nonfarm Payrolls data cools hopes of Fed cuts
The US economy created 199,000 jobs in November, well above the 1800,00 reading forecasted by market analysts, and up from the 150,000 jobs created in October.
Beyond that, hourly earnings increased at a 0.4% pace, somewhat faster than the 0.3% expected by the market. This reveals that the US labour market remains strong, tackling the doubs triggered by the weak JOLTs and ADP and dampening investors' hopes that the Fed might start easing its monetary policy in March.
The market reaction has supported the US Dollar, sending the EUR/USD to fresh lows below 1.0750 although the pair has trimmed some losses shortly afterwards.
Technical levels to watch
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