EUR/USD Rockets Past 1.1560 as Soft U.S. Jobs Data Fuel Fed Rate-Cut Surge

EURUSD gained sharply after dismal US jobs data. The pair hit an intraday high of 1.15808  and showed a minor sell-off. It is currently trading around 1.15392.

The July U.S. labor report showed a severe negative surprise as nonfarm payrolls dropped by 23,000, missing estimates for an 80,000 gain, and month-on-month pay growth slowed to a meager 0.1%, so indicating a fast decline in hiring momentum and labor-cost inflation. Though the unemployment rate dropped to 6.4% unexpectedly, this improvement is probably skewed by a declining labor force rather than actual job growth, which reflects the general weakness of the labor market. Therefore, the mix of declining payrolls and fading inflation pressure strongly supports interest rate cuts by the Federal Reserve, pushing down Treasury yields and the U.S. dollar and so boosting gold and leaving stocks caught between lower rate expectations and remaining recession worries.

Major support- 1.13700/1.12946. Near-term resistance- 1.4380/1.14800/1.1500/1.1530.

It is good to  buy on dips around 1.15600 with SL around 1.15100 for a TP of 1.1660.