Home Forex Euro Surges on Weak U.S. Employment Report

Euro Surges on Weak U.S. Employment Report

Illustration of a long shadow flag of France vector icon with an euro sign

A weak employment report out of the U.S. sent the euro surging to a three-week high on Friday, and dampened expectations of a rate hike by the Federal Reserve in the near-term.

According to the U.S. Labor Department, the economy added 38,000 jobs in May, the lowest number since September 2010. Economists were expecting payrolls to increase by 164,000.

To make matters worse, April’s number was also revised down from 160,000 to 123,000.

The report pushed the euro ahead of the dollar by 1.91%, with EUR/USD at 1.1366.

Late Friday, the dollar index fell 1.74% to 93.9, its weakest level since May 12. The index closed the week at 1.54%.

The dollar is recovering from Friday’s losses on Monday, with gains against several major currencies.

USD/JPY advanced 0.66% to 107.24, and the EUR/USD slipped 0.15% to 1.1350. The dollar was also higher against the pound, but lower against the Swiss franc, with GBP/USD at 1.4443 and USD/CHF at 0.9747. The greenback advanced against the Canadian dollar, with USD/CAD at 1.2944.

The dollar index also advanced on Monday, climbing 0.22% to 94.11. Although the gauge is climbing, it’s still hovering near Friday’s three-week low of 93.86.

Looking at the week ahead, there are several significant events that will likely affect the markets:

  • June 6: Janet Yellen, Fed Chair, will speak in Philadelphia. Germany will publish its factory orders data.
  • June 7: The Swiss National Bank will release its data on foreign currency reserves. The Reserve Bank of Australia will announce its benchmark interest rate and release its rate statement.
  • June 8: China will release data on trade balance. Japan will publish revised data on first-quarter growth. The U.K. will release its industrial and manufacturing production data. Canada will publish data on building permits.
  • June 9: China will publish inflation data, although its markets will be closed. The Reserve Bank of New Zealand will announce its benchmark interest rate and release its policy statement. The U.K. will release its trade balance data, and the U.S. will announce its jobless claims report.
  • June 10: China’s markets will be closed. Canada will release its monthly employment report. The U.S. will publish consumer sentiment data.
Previous articleAIG Services Index Pushes up Aussie as Yen Weakens on Wage Data
Next articleThe Euro Advances against the Dollar, The Pound Jumps 1%
 Jacob Maslow offers clients effective digital marketing insights that enhance website visibility and improve SEO as an online marketing consultant at Consultwebs. His approach marries creativity to numbers to show significant ROI for marketing efforts. This Brooklyn native has spent years helping skilled professionals, including medical and legal professionals rank for relevant search terms. Clients attain their marketing objectives with Maslow. He has helped boutique law practices in crowded markets rank No. 1 in Google ranking. His efforts doubled the revenue for Allergy Be Gone's non-Amazon sales to $4 million annually. SEO ranking and revenue growth are prioritized when Maslow consults with prospects and long-term clients. Maslow has over a decade of experience implementing SEO practices and running successful marketing campaigns. In addition to working with clients in various fields, but often with those in legal, financial and medical areas, he is an author, offering his expertise to those seeking to improve their engagement with online audiences. Read what Maslow has to share with eager audiences on business.com and business2community.com, including recent articles: "4 Mistakes You Can Correct Today to Be a Social Media Superstar" and "6 Things SEO Can't Do for Your Business." Maslow puts his connections to work for clients. He founded many news sites including: Forex Binary News; eThailand; Key Investing; Rapid News Network and StreetWise Journal. Jacob Maslow stays busy as owner of Legal Scoops, Daily Forex Report, Investing Alerts and bestportablechargerz. Feel free to seek his advice on Facebook, Quora and Slideshare or contact Jacob Maslow directly.