The dollar firmed against the euro on Thursday after official data revealed the U.S. economy added far more payrolls than expected in June. The dollar firmed after the U.S. Department of Labor reported that non-farm payrolls rose by 288,000 in June, easily surpassing expectations for an increase of 212,000. May’s figure was revised up to a gain of 224,000 from 217,000. The unemployment rate ticked down to 6.1% from 6.3% in May. Analysts had expected the jobless rate to hold steady at 6.3% last month.
Elsewhere in Europe, ECB President Mario Draghi reiterated the bank’s forward guidance that rates will remain on hold at present or lower levels for an extended period. He emphasized that “the governing council is also unanimous in its commitment to use unconventional instruments’ if necessary, to address the risk of too-prolonged period of low inflation.”
The ECB left all rates on hold earlier Thursday, in a widely anticipated decision, after cutting rates to record lows in June. Draghi said unemployment rate in the euro zone is still too high and warned that risks to the economy remain to the downside. The ECB president also announced that it will shift to a six-week meeting cycle from January 2015 and that it will start publishing meeting minutes.
Intra-day bias remains on the downside as 21 and 55 EMA’s on the 1 hour and 4 hours time-frames shows more supply of the pair could be seen. Moreover, MACD and RSI and SSRC stochastic oscillators also show signs of bearish continuation, so am expecting price to retest 1.35018 support in the long term picture.