EUR/USD fell on Friday, wiping out the week’s gains after stronger US Nonfarm Payrolls data lifted the US Dollar. The pair was trading near 1.1132, down 0.77% on the day. The US added 165K jobs in October versus a 65K forecast, while September payrolls were revised up to 60K from 29K, and the Unemployment Rate ticked down to 4.1% from 4.2%. Average Hourly Earnings rose 0.4% MoM against expectations of 0.3%, and although annual wage growth eased to 3.1% from 3.2%, it still exceeded the 2.9% forecast.
US Dollar Strengthens Amid Strong Labor Data
The US Dollar Index was around 102.33, up 0.73%, recovering after a slide to a five-week low near 101.20 earlier in the week following US midterm-election results and an AI-driven equity sell-off. Markets interpreted the data as consistent with a resilient labour market, keeping a December rate hike in consideration as the Federal Reserve aims for a 2% inflation target, with upside risks linked to higher energy costs tied to the Middle East conflict.
Eurozone Retail Sales and ECB Outlook
In the Eurozone, Retail Sales fell 0.7% MoM in September versus a 0.1% expected decline after a 2% drop in August, while annual growth slowed to 0.4% from 1.3%, below a 0.6% forecast; traders continued to price in a possible ECB increase in December, albeit with a cautious stance.
