EURUSD Forecast And Technical Analysis Nov 6-10
The pair traded within a roughly 100 pips range, correcting partially the sharp losses triggered by the ECB and the US Q3 GDP report at the end of the previous week. The common currency tried to recover some ground but failed, despite a boring Fed and the miss in Nonfarm Payrolls’ numbers.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.23% to 94.84.
ISM nonmanufacturing data for October showed an uptick to 60.1, beating expectations of 58.5. This represents the highest reading for the service sector index since 2005.
The upbeat nonmanufacturing report raised investor outlook on the U.S. economy, spurring a rebound on the dollar, which had come under pressure following data showing the U.S. economy created fewer jobs than expected in October.
As for the employment report, the headline was a miss, sure, but the bar was too high: expectations were of 310K new jobs, and the US economy created “just” 261,000 in October. But previous months’ revisions added 90K of jobs created. The unemployment rate fell to 4.1%, its lowest in decades, while wages disappointed…again
As a conclusion; the unemployment rate was better than expectations. EURUSD has moved up and down in 15 minutes. El Classico!