Euro erases weekly gains upbeat US jobs data fuel Dollar rally

EUR/USD erases weekly gains as stronger-than-expected US jobs data boosts the US Dollar.
US Nonfarm Payrolls rise by 165K in October, well above the 65K forecast.
Weak Eurozone Retail Sales and cautious ECB commentary add to the Euro's downside pressure.

EUR/USD slips on Friday, erasing all gains recorded this week as stronger-than-expected US Nonfarm Payrolls (NFP) data boosts demand for the US Dollar (USD). At the time of writing, the pair trades around 1.1132, down 0.77% on the day.

The US economy added 165K jobs in October, more than double the 65K forecast, while September’s increase was revised higher to 60K from 29K. The Unemployment Rate fell to 4.1% from 4.2%.

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Wage growth also beat forecasts. Average Hourly Earnings rose 0.4% MoM, above the 0.3% expected. Annual wage growth eased to 3.1% from 3.2%, but came above the 2.9% forecast.

The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 102.33, up 0.73% on the day.

The figures point to a resilient labour market, a view shared by most Fed officials. Against this backdrop, another rate hike in December remains in play as the Fed stays committed to bringing inflation back to its 2% target. Inflation risks remain tilted to the upside, particularly from higher energy costs linked to the Middle East conflict.

Across the Atlantic, weaker-than-expected Eurozone Retail Sales also weigh on the Euro. Sales fell 0.7% MoM in September, compared with a 0.1% decline expected, following a 2% drop in August. Annual growth slowed to 0.4% from 1.3%, below the 0.6% forecast.

On the monetary policy front, traders expect the European Central Bank (ECB) to raise interest rates again in December, though policymakers remain cautious. Chief Economist Philip Lane said on Friday that inflation needs to return to target within a year or two, while noting that financial conditions have already tightened. “Let’s gather information between now and December and let’s see what we do in December,” Lane said, echoing ECB President Christine Lagarde’s remarks on Thursday.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.77%	0.79%	0.40%	0.80%	1.12%	1.20%	0.54%
EUR	-0.77%		0.03%	-0.37%	0.04%	0.35%	0.43%	-0.23%
GBP	-0.79%	-0.03%		-0.38%	0.01%	0.33%	0.41%	-0.25%
JPY	-0.40%	0.37%	0.38%		0.41%	0.73%	0.80%	0.15%
CAD	-0.80%	-0.04%	-0.01%	-0.41%		0.31%	0.39%	-0.27%
AUD	-1.12%	-0.35%	-0.33%	-0.73%	-0.31%		0.08%	-0.58%
NZD	-1.20%	-0.43%	-0.41%	-0.80%	-0.39%	-0.08%		-0.64%
CHF	-0.54%	0.23%	0.25%	-0.15%	0.27%	0.58%	0.64%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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