Euro Gains vs. Dollar on Back of Disappointing US Employment

The euro gained on the US dollar today after employment data from the United States missed analysts’ projections. The currency also rallied versus the Great Britain pound but was unable to advance against the Japanese yen.

US non-farm payrolls grew by 214,000 jobs in October. While not bad by itself, the figure was below market expectations. Yet at the same time the unemployment rate dropped to 5.8 percent, even though experts predicted that it would stay unchanged at 5.9 percent.

The worse-than-expected US data allowed the euro to halt its decline and to push back the dollar. Yet it is hard to believe that euro’s gains will last long, considering prospects for additional stimulus from the European Central Bank and tighter monetary policy from the Federal Reserve.

EUR/USD climbed from 1.2374 to 1.2434 as of 18:03 GMT today after touching 1.2357 — the lowest rate since August 2012. EUR/GBP jumped from 0.7814 to 0.7845. EUR/JPY traded at 142.58, close to its opening level of 142.55, after rising to 143.05.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *