The market's most traded currency pair is in consolidation on Friday. The current EURUSD quote is 1.0890.
The US dollar strengthened rapidly yesterday after the US employment statistics were published, but investors found the strength to stabilise the situation. Data on the number of open jobs in the labour market, excluding agriculture, showed a decline to 9.82 million in May from 10.32 million previously. This means the number of available job vacancies declined. At the same time, the number of new hires in companies increased to 6.21 million from 6.10 million, while the number of people laid off rose to 4.02 million from 3.77 million.
US private sector jobs from ADP in June soared to 497 thousand from 267 thousand previously.
The dollar reacted by rising because the Fed had hoped to see more sluggishness in the employment sector. The imbalance between labour demand and supply can lead to a rise in wages. This is one of the most obvious pro-inflationary factors. The Fed continues to fight inflation and must consider all fluctuations in the employment sector when making its forecasts.
The labour market remains strong. Today the US will publish the June unemployment rate as well as the number of non-farm payrolls. A high reading will support the position of the US dollar.