US NFP report for March was a key macro event of the day and was released at 1:30 pm BST. Market expected a reading more or less in-line with the ADP report released earlier this week, that pointed to 455k jobs gain. Actual data turned out to be a bit weaker with non-farm employment change coming in at 431k. However, this is still a solid number and combined with higher-than-expected wage growth, it makes a 50 basis point rate hike in May look almost certain.
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Non-farm payrolls: 431k vs 475k expected (ADP: 455k)
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Unemployment rate: 3.6% vs 3.7% expected
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Wage growth: 5.6% vs 5.5% YoY expected
Market reaction was limited as the report did not deviate much from expectations. EURUSD dipped but the scale of the move didn't exceed 0.2%. Somewhat negative reaction could have been spotted on indices as well but just like in case of USD - it was limited.
EURUSD dropped following release of NFP report for March. However, scale of reaction was minor. Main currency pair tries to break below a short-term support zone in the 1.1040-1.1050 area. Source: xStation5
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