FXstreet.com (Barcelona) - The Euro is rising after the worst than expected US Non Farm Payrolls data and the EUR/USD has risen above the 1.2700 level after be fighting along the first 30 minutes after the data releases.
Unemployment continues growing at a very fast pace in the United States, the jobless rate has reached the 8.1% February, its highest level since 1983, US has lost 1.3 million jobs last two months as NFP have decline by 651.000 in February and by 655,000 in January.
The EUR/USD has risen more than 70 pips from the 1.2665 to 1.2741 after the NFP data releases, reaching its March high. Currently, the pair is trading around the 1.2710/30 band.
According to Kathy Lien, Director of Currency Research at GFT, the first reaction was an improvement in risk appetite, with the EUR/USD and GBP/USD rallying as safe haven flows diminish: It remains to be seen whether the rally in risk appetite can last because we are already seeing a correction the initial gains. In general, the payrolls report will probably not have a lasting impact on the US dollar because it represents the same old depressing story of massive job losses. Weakness in the US economy has been discounted and in many regards, traders are focusing on what's in store for the next months and they are relieved that job losses did not hit 1 million. Alot of fiscal stimulus is in the pipelines which could help stimulate the economy.