{"id":14472,"date":"2024-08-06T08:25:11","date_gmt":"2024-08-06T08:25:11","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14472"},"modified":"2024-08-06T08:25:11","modified_gmt":"2024-08-06T08:25:11","slug":"eurusd-rallies-on-weak-us-jobs-data-best-day-since-november-2023","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/eurusd-rallies-on-weak-us-jobs-data-best-day-since-november-2023\/","title":{"rendered":"EURUSD rallies on weak US jobs data: Best day since November 2023\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EURUSD surges 1.3%, marking its best session since November 2023\u00a0<\/li>\n\n\n\n<li>Nonfarm payrolls for July disappointed significantly, coming in at 114,000 against expectations of 174,000.\u00a0<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The EURUSD currency pairs experienced a strong rally and continued to gain momentum. The European currency surged 1.3% to log its best trading day since November, driven by a substantial sell-off in the US dollar following dismal nonfarm payrolls data.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Euro climbed to a session high of $1.0926 last Friday, erasing the losses accumulated over the past couple of weeks. The bullish sentiment carried on to Monday, with the pair trading up to $1.0970.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-69-1024x511.jpg\" alt=\"EURUSD-ECN chart displaying a slight downtrend of -0.19%. The chart shows an open at 1.09469, a close at 1.09257, a high of 1.09631, and a low of 1.09220. The chart includes various moving averages (5, 10, 20, 30) and a MACD indicator (12, 26, 9).\" class=\"wp-image-14473\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: EURUSD rallies 1.3% on weak US jobs data, as observed on the<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noreferrer noopener\"> VT Markets app<\/a>.\u00a0\u00a0<\/em><\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Impact of weak US jobs data<\/strong>&nbsp;<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The US dollar was heavily impacted by the weak jobs report, which showed that the US economy added only 114,000 jobs in July, well below the expected 174,000. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This miss raised concerns about the strength of the US labour market, particularly with interest rates sitting at a 23-year high. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The challenging environment for job growth has increased market expectations for a more substantial rate cut by the Federal Reserve in September, with some analysts now anticipating a 50 basis point cut instead of the previously expected 25 basis points.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The euro climbed to the strongest level in seven months as signs the US economy is much weaker than previously thought bolstered bets on Federal Reserve interest-rate cuts, reducing the attractiveness of the dollar <a href=\"https:\/\/t.co\/M6MdAVEtKJ\">https:\/\/t.co\/M6MdAVEtKJ<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1820451707198796245?ref_src=twsrc%5Etfw\">August 5, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The disappointing jobs data has shifted market dynamics, leading investors to offload the US dollar in favour of other currencies. Lower interest rates typically reduce the appeal of a currency as they lead to lower yields.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related content: <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\" target=\"_blank\" rel=\"noreferrer noopener\">Interest rate tug-of-war for central banks<\/a>\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent strength from the euro is also attributed to a broader shift in market sentiment, with traders looking for safer havens amid concerns about the US economy. This shift has provided the euro with a significant boost, allowing it to recover from recent lows and move towards higher levels.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Short term outlook for EURUSD<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For short-term traders, the current movements in the EURUSD pair present a range of opportunities. The recent surge in the euro, driven by weak US jobs data and expectations of a rate cut, suggests potential for further volatility.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and<\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\" target=\"_blank\" rel=\"noreferrer noopener\"><strong> <\/strong><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EURUSD surged 1.3% as weak US nonfarm payrolls data fueled expectations of a significant Fed rate cut. Read more to understand the market opportunities and risks.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[53,28,12],"class_list":["post-14472","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-cable","tag-dollar","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14472"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14472\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}