EUR/USD falls towards 1.1900 handle post-NFP

The Non-Farm Payroll came below expectations at 164K versus the 192K expected while wages’ growth also disappointed at 2.6% YoY.
EUR/USD got an initial boost close to 1.2000 to then fall toward 1.1900.

Flavio Tosti Independent Analyst

The EUR/USD is trading at around 1.1920 down 0.56% on Friday.

The US Non-Farm Payrolls report for April was a disappointment on the headline with only 164,000 new jobs added versus 192,000 expected. Wages also disappointed with 2.6% against 2.7% expected for the yearly reading to April and 0.1% month-on-month versus THE 0.2% expected. The unemployment rate fell to 3.9% versus 4% expected which is seen as positive.

Initially, the US dollar reacted negatively but it was short-lived. Just after the release EUR/USD rose toward 1.2000 but then fell back as bears are eyeing the 1.1900 at the time of writing.

Investors might think that the Fed is not that concerned at this point. The NFP report was disappointing but not an outright disaster. Easter holiday effect might have been in play as well.

EUR/USD 4-hour chart

The trend is bearish. Supports are seen at 1.1817 and at 1.1741 swing lows while resistances are seen at 1.1937 swing low and at 1.2000 figure.

Author

Flavio Tosti

Independent Analyst

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.