Test content

The EUR/USD pair witnessed heavy selling for the second straight day on Friday and retreated further from its highest level since April 2022 touched the previous day. The US Dollar rallied across the board in reaction to the stellar US monthly employment details and turned out to be a key factor exerting downward pressure on the major. The headline NFP print showed that the economy added 517K jobs in January, surpassing even the most optimistic estimates. The previous month’s reading was also revised higher to show an addition of 260K vacancies as compared to the 223K reported originally. Furthermore, the unemployment rate unexpectedly dipped from 3.5% in December to 3.4% – the lowest since May 1969. Average Hourly Earnings, meanwhile, rose 0.3% MoM and 4.4% over the past 12 months, down from 0.4% in December and 4.9%, respectively. Nevertheless, the data was strong enough to allow the Federal Reserve to keep hiking interest rates. It forced investors to scale back their bets for an imminent pause in the policy-tightening cycle. This, in turn, pushed the US Treasury bond yields sharply higher and triggered aggressive short-covering around the USD. Apart from this, the risk-off impulse was another factor that assisted the…