Tuesday, December 5, 2023

The euro falls after the US job creation figures.

He euro depreciated below $1.10 after the release of US job creation figures for April and wage increases, which were stronger than expected.

The euro was changing around 3:00 GMT at US$1.1002, compared to US$1.1025 in the last hours of the negotiation European currency market of the previous day.

He European Central Bank (ECB) set the reference exchange rate for the euro at US$1.1014.

The US economy created 253,000 non-farm jobs in April, more than expected, figures that show that the market American labor is robust.

In addition, the wages rose in the US in April also more than expected, with median hourly wages up 0.5% from the previous month and 4.4% year-on-year, due to a lack of staff.

Are figures they carry risks that inflation will rise further and that the Federal Reserve (Fed) will have to raise interest rates further.

The Fed decided on Wednesday to raise its interest rates in 25 points basic, up to a range between 5 and 5.25%, and hinted that it will stop there, although he also said that his decisions will depend on economic data.

THE ECB also increased theirs by a quarter of a point, up to 3.75%

“Several members of the government council They still anticipate 2-3 additional increases throughout the second and third quarters, so we believe that a large part of the ECB’s communication efforts from now on will point in this direction, which we expect will favor the euro in the coming weeks ”, comment the analysts of Monex Europe.

The recent data from the economic activity Eurozone data show growth conditions holding up despite higher rates and a difficult winter season.

For this reason, Monex Europe analysts have revised their 1- and 3-month forecast for the euro-dollar exchange rate upwards, going from 1.09 and 1.10 to 1.10 and 1.12 respectively.

The single currency was exchanged in a band of fluctuation between US$1.0970 and US$1.1046.


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