EUR/USD declined following the release of US nonfarm payrolls as employment growth beat expectations. But the currency pair rebounded later as markets turned their attention to wage inflation that missed expectations.
US nonfarm payrolls rose by 128k in October, beating the average forecast of 90k. The September increase got a big positive revision from 136k to 180k. Unemployment rate rose a bit from 3.5% to 3.6%, but market participants were expecting that. Average hourly earnings increased by 0.2% after showing no change in the previous month but missed market expectations of a 0.3% increase. (Event A on the chart.)
Markit manufacturing PMI rose a bit to 51.3 in October from 51.1 in September according to the final estimate. Traders were anticipating the same 51.5 reading as in the preliminary estimate. (Event B on the chart.)
ISM manufacturing PMI advanced to 48.3% in October from 47.8% in September but failed to meet market expectations of a 49.0% figure. (Event C on the chart.)
Construction spending rose 0.5% in September from August, exceeding the average forecast of a 0.2% increase. The August reading got a negative revision from an increase of 0.1% to a drop of 0.3%. (Event C on the chart.)
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Posted on Forex blog.