US Jobs Surged in October
November 2, 2007
Today’s non farm payroll report by Bureau of Labor Statistics showed an increase in employment in October. 166,000 new jobs were added vs 85,000 jobs estimated by economists polled by Thomson’s IFR Markets. Job gains occurred in professional and business services, health care, and leisure and hospitality sectors. The number of manufacturing jobs continued to decline, and employment in the construction sector was little changed.
Strong employment data show US economy is resilient and is on its way to recovery from troubles in the housing and financial sectors. The positive news gave strength to the USD in the first minutes after the report. However its strength was overrun by bullish sentiment in the EUR/USD pair. After touching the 1.4447 level the pair rose sharply to 1.4520. Euro strength is primarily based on a possible rate hike by the ECB by year end. Next week’s ECB meeting (November 8th) will be critical for the euro. If the the central bank decides to raise the interest rate EUR/USD will climb to new highs, however if the hike will not occur there can b
at 1.4400.
EUR/USD 12:30 GMT 2007- non-farm payroll October release
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