The euro managed to gain some ground against the U.S. dollar after the somewhat weaker-than-expected U.S. job report.
The EUR/USD rose to near 1.2280 after the U.S. job report today. Although the actual Nonfarm Payrolls increased fewer than expected, but the Average Hourly Earnings (MoM) came in better. The Average Hourly Earnings increased 0.1% more than the market’s expectation. The average hourly earnings are seen related to inflation. Higher earnings mean stronger inflation pressure; therefore, the Fed needs more aggressive rate hikes to control the inflation, Maybe it was why the euro’s gain was somewhat limited.
The previous week’s result can be found here.