Last trading week ended in a surprise: the US unemployment rate declined from 8,1% in August to 7,8% in September. Though everybody expected the figure to grow. The main driver of the situation improvement on the labor market was a rapid growth of partial employment as people who have at least any job are not considered unemployed. Besides as surveys show a lot of Americans can’t find full time jobs and because of it have to take part time ones. On the other hand Broader unemployment rate remained on the level of 14,7%. The main difference between two indices is that the regular unemployment rate doesn’t take to account those Americans who have lost hope to find a job and don’t do anything to change the situation. At the moment there are a lot of such Americans. Also there are not enough new jobs created in order to bring back the rate to the levels of the period before crises. This is why the reaction of EURUSD was so insignificant on such a positive statistics.
The Euro appreciated against the US Dollar from 1.2993 to 1.3071 with further dip to 1.2999. The positive news was a sudden drop of unemployment rate in Europe. The range of 1.2600 - 1.2720 can be regarded as a new goal in the short term.
The Pound depreciated against the US Dollar from 1.6136 to 1.6100. The further move is anticipated to 1.6060. In case of the loss of this level the downward trends might exacerbate and the sales’ pressure will lead the British currency to the area of 1.5750.