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EUR/USD Continues On A Negative Note
- The pair is trading below 1.10 after positive U.S. Data.
- Bureau of Labor Statistics publishes news with regards to new jobs in December.
The price of the EUR/USD pair remains under strong pressure after the publication of the good employment data today in the United States. The published figures also leave some less pleasant surprises. The pair remains close to the four-month lows marked on Friday at 1.0948, preventing further falls.
Specifically, the US economy in January generated a total of 225,000 jobs outside of the agricultural sector (206,000 of them in the private sector). This figure is much higher than the market consensus (160,000). However, it is still far from what was estimated this Wednesday by the private consultant, ADP (291,000).
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Good data still helping the USD demand
In addition to this good news, the Bureau of Labor Statistics has revised the final data for the month of December. They have registered 147,000 new jobs from 145,000. Similarly, the figures published today by the dependent entity, the Department of Labor, show that inflationary pressures in the economy accelerate again with the change of the year. After the previous news, the slight cooling was seen in the month of December.
The evolution of wages rises one-tenth over the monthly (+ 0.2%) and year-on-year (+ 3.1%) comparison. The market expected slightly more ambitious progress in monthly terms (+ 0.3%). It also remained in the annual comparison (+ 3.0%). Thus, the impact of both deviations on expectations has been offset.
The US unemployment rate rises in the face of the increase in participation
Similarly, the rise in the unemployment rate by one-tenth, to 3.6% might seem negative. However, this finds its justification in the two-tenth increase in the participation rate. The percentage of the population of working age who either has a job or actively searches is up to 63.4%. Even if the economy continues to generate employment, unemployment does not increase due to dismissals. It increases because there are more people than before interested in finding a job.
The review of the annual data from the statistical office leads on the contrary to negative effects. Pressured by the strength of the US dollar, the euro was prevented from continuing to fall below the level of 1,0950,
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