Today, the EURUSD currency pair fell over 55 pips after the November release of the US non-farm payrolls data, which showed that the US added 199,000 jobs, beating analysts’ estimates of 184,000 new jobs. Today’s data follows October’s 150,000 non-fam jobs.
EURUSD: Euro Falls Against Dollar on Upbeat Non-Farm Payrolls
In addition to the information mentioned above, the non-farm payrolls report also revealed that the Unemployment Rate declined, dropping from 3.9% in the same period to 3.7%. This shift indicates a positive trend in the labour market.
As measured by the change in Average Hourly Earnings, annual wage inflation remained stable at 4%, aligning with analysts’ forecasts. This suggests that wage growth has maintained its pace during the reported period.
Furthermore, the Labor Force Participation Rate experienced a slight increase, rising to 62.8% from 62.7%. This uptick indicates a modest expansion in the pool of individuals actively engaged in the workforce.
The Bureau of Labor Statistics (BLS) provided additional context by noting, “The change in total non-farm payroll employment for September was revised down by 35,000, from +297,000 to +262,000, and the change for October remained at +150,000.”
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These revisions indicate that the employment figures for September and October combined are 35,000 jobs lower than previously reported, reflecting adjustments in the overall employment data.
In the meantime, the US Dollar (USD) has surged, breaking through the 104 mark. This resurgence in the US Dollar can be attributed to the market’s shift away from anticipating rapid and immediate interest rate cuts by the US Federal Reserve.
Given the robust and continually expanding job market, the Federal Reserve is now more comfortable and prepared to maintain higher interest rates for an extended period to bring inflation back in line with the target of 2%.
