EUR/USD drops to four-day lows after NFP on strong US dollar

In an immediate reaction, the EUR/USD fell from 1.0915 to the 1.0880 zone, reaching the lowest level since Monday, after the release of the US employment report. Numbers came in mostly in line with expectations, boosting the Greenback across the board.

US Nonfarm Payrolls rise by 236K in March against 240K expected; Unemployment rate drops to 3.5%. the US Dollar surged after NFP, as the US Treasury yields soared. The EUR/USD pair drops to test levels under 1.0880, however some analysts expect the pair to surge later on the day up to 1.0910.

The US Labor Department’s closely watched jobs report showed Nonfarm Payrolls increased by 236,000 in March, near the 240,000 of markets consensus. The Unemployment rate fell by one-tenth of a percentage point to 3.5%. Average hourly earnings rose by 0.3% MoM, matching consensus.

The data was mostly in line with analyst expectations, however, market participants might have been looking at weaker-than-expected data considering the latest economic indicators that point to a softer labor market.

The US yields jumped after the report, boosting the US Dollar. At the same time, Wall Street futures are up. The DXY is above 102.00, while the US 10-year yields rose from 3.32% to 3.37%.