EUR/USD fell sharply with the initial reaction to US jobs report.
The pair remains on track to end the week little changed.EUR/USD managed to erase a large portion of its daily losses but lost its recovery momentum before reaching 0.9800. As of writing, the pair was down 0.1% on a daily basis at 0.9780. Following the latest price action, EUR/USD remains on track to end the week flat.
Dollar capitalizes on upbeat NFP
Earlier in the day, the data published by the US Bureau of Labor Statistics revealed that Nonfarm Payrolls rose by 263,000 in September. This print came in better than the market expectation for an increase of 250,000 and helped the dollar outperform its rivals. Additionally, the Unemployment Rate declined to 3.5% from 3.7%.
With the initial reaction, the US Dollar Index (DXY) jumped to a daily high of 112.82 and forced EUR/USD to drop to a weekly low of 0.9726. Week-end flows and profit-taking, however, seem to be limiting the dollar’s gains with the DXY retreating below 112.50 toward the London fix.
Meanwhile, Wall Street’s main indexes are trading deep in negative territory, making it difficult for EUR/USD to stretch higher. At the time of press, the Nasdaq Composite and the S&P 500 indexes were both losing more than 2% on the day.
EUR/USD rebounds toward 0.9800 after NFP-inspired drop
EUR/USD has gathered recovery momentum and advanced toward 0.9800 after having declined sharply in the early American session with the initial reaction to the US jobs report. In September, Nonfarm Payrolls rose by 263,000, surpassing the market expectation of 250,000.
GBP/USD struggles to pull away from 1.1100
Although GBP/USD managed to erase a small portion of its daily losses, it continues to trade in negative territory near 1.1100. The renewed dollar strength on upbeat labour market data from the US weighs on the pair, which remains on track to end the week little changed.
Gold bounces back, recovers above $1,700
Gold came under selling pressure and fell to a fresh daily low of $1,690.55 on Friday before recovering modestly. Following the upbeat labor market figures from the US, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, weighing on XAU/USD.
Bitcoin Weekly Forecast: Crypto markets to experience one last sell-off
Bitcoin has been in a steady consolidation for more than two weeks and shows no signs of directional bias. The NFP could trigger a volatile episode that could resolve its range tightening and establish a directional bias.