Euro surges as shocking US NFP reverses Fed September hike expectations
EUR/USD jumps 0.43% on the day and trades around 1.1570 at the time of writing, as the US Dollar (USD) comes under heavy selling pressure following a much weaker-than-expected US employment report.
Euro surged 0.43% on Friday as the US Nonfarm Payrolls (NFP) report showed a much weaker than expected decline of 23K jobs in July, compared with market expectations of an increase of 80K jobs. The sharp deterioration in payroll growth led to a downward revision of 103K jobs in total, with June payrolls revised down from 57K to 20K and May from 129K to 63K.
The US Dollar (USD) weakened sharply following the release, as investors reduced bets that the Federal Reserve (Fed) would tighten monetary policy, with the chance of a 25-basis-point rate hike at the September meeting falling to just 44%. The Euro (EUR) traded around 1.1570, extending its advance above key moving averages, while European economic data provided limited support.
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