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EUR/USD Rallies to Monthly High after Nonfarm Payrolls

by shahid hussain on Monday, May 11, 2009,

EUR/USD rose for a second day today and reached the highest value in more than a month after the U.S. employment declined at a less than expected rate. Traders felt more confidence in the high-yielding assets and turned to stock and euro buying, dumping the low-yielding greenback. EUR/USD is now trading near 1.3488.

Nonfarm payrolls decreased by 539k in April instead of the expected 600k. In March they were down by 699k. The overall unemployment rate rose from 8.5% to 8.9% as expected.

Wholesale inventories were down by 1.6% in March, following 1.7% drop in February. Forecasts by the economic strategists showed -1% change.


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