Euro moves in tandem with non-farm employment data

Mecklai graph of the day: Key for FED and Obama

Non-farm payrolls is the most closely watched indicator in the Employment Situation and considered the most comprehensive measure of job creation in the US. The NFP will be a key piece of data as QE3 was announced in the month of September and also because elections are just over a month away now.

From the below graph it can be seen that the pair has moved in tandem with the payrolls data. The pace of job growth in the last few months has been somewhat lackluster and a better-than-expected jobs report would help boost the US economic outlook and the pair would rally further.

On the political front weak US economy and the high jobless rate of 8.1 % are voters’ top considerations in deciding the vote on November 6. With less than five weeks before the Election Day, sustainability of unemployment rate above 8% would not augur well for the Democrats and will be the deciding factor in the upcoming US presidential elections.

The below graph shows the movement of EURUSD to the Non-Farm Employment Change releases

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