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The euro is trading at $1.373, up 0.3% on the day after today's US non-farm payrolls report missed analysts’ expectations. The report, which was delayed due to the partial shutdown of federal employees in the US, was anticipated to show an increase of 180,000 new jobs on the payroll, but only 148,000 were added. Some economists believe we need to add at least 200,000 each month to ensure the economy is growing.
Most concerning is the fact that this report was for September, so does not even take into account October’s shutdown. Traders viewed the report as a sign that quantitative easing will be kept in place until the new year, and that is why the euro has risen versus the US dollar.
The French industry minister Arnaud Montebourg has stated the euro is too strong versus the US dollar. Mr Montebourg believes that if the European Central Bank was to devalue the euro by 10% against the dollar it would boost productivity and create new jobs. He believes that the recent strength of the euro may hamper the eurozone’s economic recovery.