EUR Fails to Capitalize on the Slower Pace of US Labor Market Expansion

May 6, 2016 (Tempus, Inc.) – The EUR staged a short-lived rally attempt immediately following the NFP release, but quickly gave up its gains despite of the U.S. labor market registering its slowest pace of expansion in seven months.

The Euro traded lower against the dollar and depreciated as a result of a rebound in the price of commodities. Recently, the shared currency has been a beneficiary of chaos and instability in global markets and may lose ground in the long-term if the environment improves for resource-based economies.

The Yen and Euro played safe-haven roles during the first quarter of the year, but negative rates and further QE may start to weigh on them as more currency flows as intended. Although GDP and unemployment improved for the Euro-zone, there is concern over the ongoing refugee crisis and the “Brexit” vote.

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