Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


Price action for EUR/USD has been driven partly by monetary policy expectations for the US Federal Reserve. In recent interest rate statements, the US central bank has repeatedly emphasized the importance of seeing a recovery in the labor market, as jobs indicators have been part of their consideration when it comes to adjusting policy.


With that, the non-farm payrolls release tends to influence long-term price action on most dollar pairs, including EUR/USD. A stronger than expected labor report has led to dollar buying, as it has put the Fed closer to achieving its unemployment rate target, while a weaker than expected NFP reading typically spurs a dollar selloff because it hints of a longer period of easy monetary policy.

EUR/USD FUNDAMENTAL ANALYSIS: US JOBS MARKET 2Just recently though, Federal Reserve Chairperson Janet Yellen announced that the Fed would no longer be looking solely at the unemployment rate when it comes to figuring out when to start hiking interest rates. While she mentioned that other labor indicators will also be scrutinized, she also said that a rate hike might take place around six months after asset purchases end. However, she took a more dovish stance when she also pointed out that the labor market is still weak and that it could use more support from continued stimulus.

Jobs data should then have a strong impact on directing dollar direction in the long-term and recent data has reflected a bit of a pick-up. Recall that hiring conditions turned bleak a few months back when extreme weather conditions weighed on overall economic activity and it remains to be seen whether the US economy has been able to recover from this rut or not.

A strong non-farm payrolls figure would mark the second consecutive month of upbeat labor market gains, which would convince several market participants that the Fed is on track to tightening monetary policy ahead of several major central banks. Bear in mind that the issue of negative deposit rates has recently popped up from a few ECB officials, along with the suggestion of increasing LTRO operations.

The EUR/USD chart for this year so far shows how the pair usually starts a trend based on the jobs data released by the US economy. Notice that the pair is stalling at an area of interest lately, as traders sit tight ahead of the top-tier release which could dictate the dollar’s trend for the next few weeks or months.

To keep yourself updated with the latest financial news, visit the official website of Capital Trust Markets

Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand. It was established in 2013, with an emphasis on providing the most excellent customer services in the industry. The trading environment offered to investors and traders is unparalleled – devoid of all common mistakes usually prevalent in the financial trading industry. The focused determination to provide the highest quality products, services, and support to clients and customers is what truly sets Capital Trust Markets apart from every other major brokerage firm.