By Market Crowd Hunter
#EUR/USD #Markets #Forex #Fed
Half an hour ago, important data on the labor market in the United States were published.
Non-farm payrolls (Change in the number of people employed in the US non-agricultural sector): +517,000 (forecast 185K, prev. indicator 265K).
Unemployment rate: 3.4% (expectations 3.6%, pre. the indicator is 3.5%) – a new historical record.
Against this background, USD strongly strengthened against all currencies, and BTC, Gold and S&P500 went down.
The reason for such a sharp strengthening of the dollar is the prospects for inflation. The fact is that a strong labor market is the main driver of inflation growth.
The Fed pointed this out at the December meeting and even outlined unemployment targets – 4.7%.
Before that, we saw euphoria in the markets associated with the confidence that the Fed will begin to deploy its policy much earlier than Mr. Powell claims. But now we have received a serious signal that not everything is so good.
At the same time, the direction of positions still indicates a preponderance of sellers.
Technically, the price overcame the central line of the ascending channel and returned to the framework of the descending channel, from which EUR/USD left on January 12.
Now we should expect a deeper correction, up to the level of 1.0750 – 1.0775 broken on 12.01.
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