Euro Strengthens vs. Dollar as European Crisis May Be Resolved
EUR/USD halted its 4-day decline today on the speculation that the European Central Bank and the Group of Seven Nations will act to prevent a debt crisis to spread over European countries. While the non-farm payrolls posted positive results for the U.S. economy, rising unemployment rate can be consider somewhat disturbing. Still, consumer rating shows optimism for the future.
Non-farm payrolls showed the increase of 290k, which is significantly better than the expected 198k advance. The March increase was revised from 162k to 230k. Unemployment rate slightly increased to 9.9%, disturbing news as forecasts expected the rate to remain at the same level of 9.7% as in March.
Total consumer credit in the U.S. increased by $2.0 billion in March. This is a good sign as a decline of $2.9 billion was predicted and in February the drop was $6.2 billion (revised from $11.5 billion).