The U.S. dollar initially tried to rally after the release of non-farm payrolls and this pushed the pair below the current support for a brief while. Although the number of added jobs came highly above the expectations, average hourly earnings happened to be a bit disappointing. Support is set at 1.23, resistance at 1.24.
Friday’s release of non-farm payrolls had a strong influence on world markets. Although the economists were expecting jobs number to rise by 205k, the reading came highly above this numer at 313k. Last months reading was seen at 239k. This supported the greenback, but the reading was less unambiguous and the sentiment towards the dollar ultimately weakened.
Average hourly earnings happened to be a little bit disappointing amid strong jobs numbers. The previous reading was seen at 2.8%, same numbers were expected this time. Wage growth came below the expectations at 2.6%. Unemployment rate reading was also a bit disappointing, coming same as last month at 4.1%, while a drop to 4.0% was expected.
The project of imposing 25% tariff on steel import and 10% tariff on aluminium import signed last week by Donald Trump is still an important issue for the markets. Fears of a global trade war have receded after it turned out that the project excludes Mexico and Canada, while giving an opportunity to negotiate same exclusions for other countries.
Pic.1. EUR/USD chart.
The EUR/USD pair is currently seen just above the current support at 1.23. Today’s economic calendar is nearly empty, limited to the monthly budget statement in the U.S., so we expect the pair to consolidate in its current range.