EUR/USD was trading sideways ahead of US nonfarm payrolls but slid after the release of the employment report. Employment growth was better than expected, while other indicators looked solid as well, though economists were concerned that wage inflation basically is not moving anywhere.
Nonfarm payrolls rose 209k in July, exceeding the median forecast of 182k. Furthermore, the already substantial June increase of 222k was revised to 231k. Unemployment rate ticked down from 4.4% to 4.3%, in line with expectations. Average hourly earnings growth was at 0.3%, also matching forecasts, up from 0.2% in June. (Event A on the chart.)
Trade balance deficit shrank from $46.4 billion in May to $43.6 billion in June. Forecasters were close with their estimate of $43.9 billion. (Event A on the chart.)
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