EUR / USD: Report on the labor market may adversely affect the US dollar

The US dollar fell against the background of weak labor market data, which was published yesterday afternoon. However, good labor productivity figures have managed to limit the fall in the dollar.

According to a report by ADP and Moody's Analytics, the number of jobs in the US private sector increased by 179,000 in November of this year, which was worse than economists' forecasts, which expected growth of jobs in the private sector in November by 190,000.


The main growth was observed in the servant sector, where the increase amounted to 163,000 jobs, while the sector of production of goods created 16,000 jobs.

As for the weekly data on the number of Americans who have submitted new applications for unemployment benefits, the figure has decreased here, which indicates a favorable situation in the market.

According to a report by the US Department of Labor, the number of initial claims for unemployment benefits fell by 4,000 in the week from November 25 to December 1, to 231,000. Economists had forecast an increase in applications to 224,000.

Labor productivity in the US continued to grow in the 3rd quarter. According to the US Department of Labor, non-agricultural labor productivity increased by 2.3% per annum compared with the previous quarter. A preliminary forecast indicated that growth in the 3rd quarter was 2.2%. Unit labor costs in the 3rd quarter increased by 0.9%.

Economists had expected labor productivity in the third quarter to remain unchanged at 2.2%, while labor costs rose 1.1%

Now to the less pleasant data. According to a report by the US Department of Labor, industrial orders in the United States in October fell immediately by 2.1% to $ 502.68 billion. Economists had forecast a drop in orders of 2.0% in October compared with September. Excluding transport, orders grew by 0.3% in October, while total orders decreased by 0.4% in October.

The US trade deficit continued to grow in October and reached a 10-year high. The main increase was due to an increase in imports and a reduction in exports.

According to the US Department of Commerce, in October of this year, the deficit of foreign trade in goods and services increased by 1.7% compared with the previous month, and amounted to 55.5 billion US dollars. Economists had expected a deficit of $ 55.0 billion.

The report also stated that exports in October declined by 0.1%, while imports rose by 0.2%. Such data will adversely affect US GDP growth in the 3rd quarter of this year.

As for the technical picture of the EUR / USD currency pair, much today will depend on the eurozone GDP data, as well as on an important report on the change in the number of people employed in the US non-farm sector. The main goal of the buyers will be the renewal of large resistance around 1.1420, a breakthrough of which will lead to the formation of a strong upward impulse in the euro. In the case of a decrease in the trading instrument, support can be sought in the area of the minimum of the week from the area of 1.1315-1.1325. Otherwise, it will be prudent to open long positions in risky assets after testing large lows around 1.1270.

The material has been provided by InstaForex Company -