Macroeconomic announcements were not supportive of the Euro today: at first, Euro area official real GDP figures came out lower than the preliminary result, standing at 2.1% compared to the 2.2% preliminary result. To add insult to injury, NFP data beat median forecasts, coming out at 201k instead of the predicted 191k. The results pushed the Euro down 8 pips initially, followed by an additional 11 pip drop at the NFP announcement. Average Hourly Earnings also grew by 0.4% MoM in August, compared to the 0.2% expectation. The positive developments in these two indicators were more than enough to cover for the small increase in unemployment to 3.9%, missing the 3.8% forecast. On a similar note, participation rate dropped in August, standing at 62.7%, versus expectations of 63%.
Next week, ECB’s decision and the economic sentiment index will show whether the Euro’s trend will continue or whether data will be strong enough to promote a rebound.