EUR/USD dips toward 1.0800 on hot US Nonfarm Payrolls, strong US Dollar

• EUR/USD falls to 1.0791, reacting to US adding 353,000 jobs in January, surpassing expectations.
• Steady US unemployment at 3.7% and faster wage growth signal tight labor market, raising inflation concerns.
• Jump in US Treasury yields and US Dollar Index rally post-job report underscore strong US economic outlook.

The Euro extends its losses versus the US Dollar following a hot US employment report, that witnessed the economy created more than 300,000 jobs in January. Therefore, the EUR/USD trades at around 1.0800, hitting a daily low of 1.0791.

US Nonfarm Payrolls in January crushed forecasts despite the upward revision of December

The US Bureau of Labor Statistics revealed that Nonfarm Payroll employment rose by 353,000 in January, crushing the previous month's reading of 216,000, which was revised upward to 333,000. Digging into the data, the Unemployment Rate was unchanged at 3.7% but below estimates, while Average Hourly Earnings ticked up to 0.6% MoM from 0.4% the previous month. On a yearly basis, earnings by the hour rose 4.5% from 4.4%, with monthly and yearly figures exceeding forecasts.

US equities tumbled on the report, while the US 10-year Treasury note yield rose by more than ten basis points, up above the 4% threshold. Consequently, the Greenback (USD) stages a comeback after the US Dollar Index (DXY) braced to 103.00, its weekly low, before surging to a daily high of 103.86.

Ahead in the calendar, the US docket will feature the release of the University of Michigan Consumer Sentiment alongside Factory Orders.

Recently, Joachim Nagel, the Bundesbank President and member of the governing Council of the European Central Bank (ECB), stated in an interview that it was too early to cut rates after the US Nonfarm Payrolls data was released.

EUR/USD Price Analysis: Technical outlook

From a technical perspective, the EUR/USD breaching of the 200-day moving average (DMA) could open the door for further downside. once sellers crack the 1.0800 figure, further weakness is seen at the 100-DMA at 1.0782, followed by the December 8 daily low, an intermediate support at 1.0724, before slumping to 1.0700. On the flip side, the 200-DMA would be the first barrier for buyers at 1.0832,before aiming toward 1.0900.