Date : 8th May 2015 EURUSD REACTS SLUGGISHLY TO NFP DATA. EURUSD, Daily U.S. nonfarm payrolls rose 223k in April, with the unemployment rate at 5.4% versus 5.5% previously (revised from 5.5%). That’s the lowest rate since May 2008. But, March’s 126k job gain was revised down to 85k, while February’s 264k was bumped up to 266k. Earnings rose 0.1% after a 0.2% March gain (revised from 0.3%). The workweek was steady at 34.5. The FOMC can’t hike in June after this so-so jobs report, if policymakers are true to their data-dependent mantra. The April numbers support the notion that March weakness was a one-off, while other timely data suggest the Q1 contraction in GDP was partly due to a variety of special circumstances, there’s been little sign yet of a robust bounce-back in Q2. Also, many of the key labour market indicators followed by Yellen shouldn’t give her much confidence that the economy can absorb a tightening. Even though the unemployment rate is at the lowest level since May 2008 and the labour market participation rate edged up slightly, the latter is still only a tick above the record low of 62.7 from March and September. Additionally, earnings growth is tepid, and employment has moderated. Plus, inflation is still not heating up, nor are conditions in the rest of the world conducive for Fed action yet either (by the FOMC’s own assessments). September still seems like the earliest the Fed could start the rate hikes. EURUSD Reaction to the jobs number has been subdued. Even though the last complete 4h candle has closed above the previous candle high the daily low from yesterday has been resisting moves higher. This being a Friday night I don’t expect strong movement to either direction. Janne Muta Chief Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.