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EUR\/USD witnesses an intense sell-off and drops to\u00a0near 1.0820\u00a0in Friday\u2019s New York\u00a0session as\u00a0the United States<\/a> Nonfarm Payrolls<\/a> (NFP) report\u00a0for May has indicated that labor demand and wage growth were\u00a0stronger than expected. The Employment report showed that fresh payrolls added by US employers were\u00a0higher at 272K than expectations of 185K payrolls and the prior release of 165K, downwardly revised from\u00a0175K.\u00a0However, the\u00a0Unemployment Rate rose to 4.0% from estimates and the prior release of\u00a03.9%.<\/p>\n Higher-than-expected payroll numbers are expected to\u00a0clear doubts about easing labor demand that\u00a0deepened\u00a0after\u00a0recent employment-oriented indicators<\/a> have suggested that the jobs market is loosening. The JOLTS Job Openings data for April and ADP Employment Change for May came in weaker than expected. Also, Initial Jobless Claims for the week ending May 31 were higher than estimates, suggesting that some heat has been released from the labor market.<\/p>\n Meanwhile, the Average Hourly Earnings, which measures wage inflation, accelerated to\u00a04.1% from expectations of 3.9% and the prior release of 4.0%, upwardly revised from 3.9% on a year-on-year basis. On a monthly basis, the wage inflation measure grew at a robust pace of 0.4% against the consensus of 0.3% and the former reading of 0.2%. This has deepened fears of inflation remaining persistent, which has resulted in a sharp decline in\u00a0market expectations for the Federal Reserve<\/a> (Fed) to start reducing interest rates<\/a> from the September meeting. According to the CME FedWatch tool, the probability\u00a0of rate cuts in September has come down to 54.4% from 68% after the release of the US NFP report.<\/p>\n <\/a><\/p>\n EUR\/USD falls vertically from the round-level resistance of\u00a01.0900 after strong\u00a0US NFP<\/a> data diminished hopes of the Fed lowering its key borrowing rates from September.\u00a0 For the time being, the major currency pair appears to be failing to break the neckline of the Inverted Head and Shoulder (H&S) pattern, which is marked from April 9 high at 1.0885. A breakout of this pattern could result in a bullish reversal.<\/p>\n The near-term outlook<\/a> remains has become uncertain\u00a0as it falls sharply to near the 50-day\u00a0Exponential Moving Average\u00a0(EMA) near 1.0812.\u00a0<\/p>\n The 14-period Relative Strength Index (RSI) has slipped into the 40.00-60.00 range, suggesting that the momentum, which was leaned toward the upside has faded for now.<\/p>\n Looking down, a break\u00a0below the 200-day EMA at 1.0800 could push it into a bearish trajectory. However, a recovery move above the round-level resistance of 1.0900 could drive the major currency pair\u00a0towards the March 21 high at around 1.0950 and the psychological resistance of 1.1000.Economic Indicator<\/p>\nDaily digest market movers: EUR\/USD weakens\u00a0US Dollar rallies<\/h2>\n
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Technical Analysis: EUR\/USD declines\u00a0to\u00a01.0820<\/h2>\n
ECB Rate On Deposit Facility<\/h3>\n