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EUR/USD Fails to Sustain Rally

EUR/USD had attempted to rally after the release of poor nonfarm payrolls but failed and is now trading below the opening level. NFP were disappointing on all fronts, be it employment growth, the unemployment rate, or wage inflation. The poor data reduces chances for a soon interest rate hike significantly.

Nonfarm payrolls grew by just 151k in August, markedly below market expectations of 180k and the previous month’s revised gain of 275k (which received a positive revision from 255k). Unemployment rate stayed at 4.9% while economists had expected a decrease to 4.8%. Average hourly earnings rose by about 0.1%, also failing to meet expectations (0.2%) and being below the July increase (0.3%). (Event A on the chart.)

US trade balance improved in July as its deficit shrank to $39.5 billion down from the revised value of $44.7 billion in June. The median forecast promised a smaller drop to $43.0 billion. (Event A on the chart.)

Factory orders rose 1.9% in July, trailing the consensus forecast of 2.1%. The June reading was revised from -1.5% to -1.8%. (Event B on the chart.)

EUR/USD as of 2016-09-02

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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