Euro benefits from US jobs report

The euro is at its highest rate versus the US dollar since November 2011 following the release of disappointing US jobs data.

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. 

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.