NFP much below expectations! 🚨EURUSD spikes 📈

07.08 - US Non-Farming Payrolls Data (July) 

• Averge Hourly Earnings (Mon): 0,1% (Expected: 0,1%; Previously: 0,3$)
• Average Hourly Earnings (YoY): 3,2% (Expected: 3,5%; Previously: 3,4%)
• Non-farm Payrolls: -23k (Expected: 85k; Previous: 20k)
• Participation rate: 61,4% (Previously: 61,5%)
• Unemployment Rate: 4,1% (Expected: 4,2%; Previously: 4,2%)

Despite the lower unemployment rate, the latest labor market data paint a bleak picture.

Average hourly earnings have fallen sharply, and the National Labor Force (NFP) itself has contracted sharply.

The only reason for the decline in the unemployment rate in these circumstances is the falling labor force participation rate.

The market is reflecting these macroeconomic sentiments and is strongly discounting the dollar following the data release.

EURUSD (M1)

Souce: xStation5