Strong NFP Data Falls Flat: EUR/USD Unfazed

The latest US Non-Farm Payrolls report showed employment numbers three times higher than expected, reaching 162,000 jobs. This has removed a major obstacle to an imminent Fed rate hike but does not provide sufficient grounds for one in September.

Fed hawks had been concerned that tightening monetary policy could freeze the labor market, while doves argued that it was necessary to maintain the current stance. However, with strong employment data, this debate has lost its significance.

The EUR/USD pair remained largely unresponsive to both the employment data and calls from FOMC hawk Beth Hammack for the central bank to act. This is due in part to market expectations that a September rate hike is unlikely.