The US Dollar rallied across the board after October payrolls more than doubled forecasts, while weak Eurozone retail sales data further pressured the Euro, pushing the EUR/USD pair down 0.77% on the day.
A much stronger-than-expected US October jobs report (165K vs 65K forecast, unemployment down to 4.1%) lifts the Dollar and pushes EUR/USD down 0.77% to around 1.1132, erasing the week's gains. Weak Eurozone Retail Sales (-0.7% MoM in September vs -0.1% expected) add pressure on the Euro. A possible Fed rate hike in December keeps the pair biased lower.
US employers added 165K jobs in October, more than double the 65K forecast, and the jobless rate fell to 4.1%, boosting expectations of another Fed rate hike in December. Weak Eurozone retail sales added to the Euro's losses, pushing the pair down 0.77% to around 1.1132.
A hawkish ECB move in December, which traders still expect, could support the Euro, though policymakers like Philip Lane remain cautious and want to gather more data first.
October payrolls of 165K doubled the 65K forecast, unemployment fell to 4.1% and wage growth beat estimates, keeping a December Fed rate hike in play. The Dollar Index jumped 0.73% to around 102.33, recovering from a five-week low near 101.20, and the Dollar was the strongest major currency on the day.
The October jobs report came in far stronger than expected, with 165K new jobs versus a 65K forecast, falling unemployment at 4.1% and better-than-expected wage growth, reinforcing the case for a possible Fed rate hike in December.
The DXY rose about 0.73% to around 102.33 on the day, after hitting a five-week low near 101.20 earlier in the week.
The Dollar-strength heat map shows the US Dollar was strongest against the New Zealand Dollar on November 6, as the upbeat US jobs report lifted the Greenback across the board. The Kiwi faces pressure from broad Dollar demand rather than any domestic news in the article.
The US Dollar was the strongest major currency against the New Zealand Dollar on the day, as the strong US jobs report drove a broad Dollar rally.
The Euro erased its weekly gains on Friday, falling to 1.1132 as a robust US October jobs report signaled a resilient labor market. With 165,000 jobs added and unemployment dipping to 4.1%, the US Dollar Index surged 0.73% to 102.33, bolstered by expectations of a potential Federal Reserve rate hike in December.
The pair fell 0.77% primarily due to a much stronger-than-expected US jobs report and disappointing retail sales data from the Eurozone, which shifted market sentiment in favor of the US Dollar.
Given the resilient labor market and persistent inflation risks, market participants believe another rate hike in December remains a viable policy option for the Fed.