EUR/USD drops to one-week lows near 0.9750 after NFP

• US Payrolls rise by 263K in September, slightly more than 250K of market consensus.
• US dollar gains momentum after NFP, hits daily highs across the board.
• EUR/USD breaks multi-hour range to the downside, flat for the week.

The EUR/USD fell from 0.9790 to 0.9750 reaching the lowest level in a week following the release of the US official employment report that showed numbers slightly above expectations. The greenback strengthened after the numbers.

Prior to the report, the pair was moving in the range between 0.9785 and 0.9815. It is moving away from the lows, back into the range as the initial reaction of the dollar fades.

On a weekly basis, EUR/USD is about to end the week hovering around the same level it had a week ago, a negative considering it traded as high at 0.9999 a few days ago. The move off lows reflects that the bearish pressure still persists. On the positive, it has been able to remain above 0.9660/70, a relevant short-term support.

Calm ends with NFP

The US official employment report showed non-farm payrolls rose by 263K in September, above the 250K expected. The unemployment rate dropped unexpectedly from 3.7% to 3.5%.

The numbers triggered volatility across financial markets ending with hours of limited price action. The US dollar rose in line with US yields that hit fresh weekly highs after the report. Stocks turn lower.

Technical levels