© Reuters. Dollar sanctioned following the NFP
The Dollar is sanctioned on the Forex following a report by the NFP in the semi-shade, with a reaction bullish of the EUR/USD pair, and a net decrease on USD/JPY.
Note that the report of the NFP included the good and the bad, with the creation of jobs under the consensus, 164k vs. 189k expected, but offset by a sharp revision upward of the numbers from the previous month, 135k against 103k initially announced.
The unemployment rate has fallen to 3.9%, against 4% expected by economists and 4.1% in the month of March.
The disappointment is, therefore, especially average hourly wages, which increased by only +0.1% month-over-month versus +0.2% expected. In addition, the figures for the previous month were revised down to +0.2% against +0.3%, as originally announced.
On the Forex, the sanction has therefore not made to wait on the Dollar. The reaction is particularly visible on USD/JPY, with a recent low of 108.65 on the pair. EUR/USD has explored the rise following the release, with a peak of 1.1993, but traders do not seem for the moment not ready to launch an assault on the 1.20.
On USD/JPY, the low of April 24, at 108.54 is the next support potential, before the psychological threshold of 108.
On EUR/USD, the upside in the short term, confronts the moving average 100 hours, as well as a line of downward trend visible since the weekly high, then the psychological threshold of 1.20, a few pips above.