Nonfarm Employment Change

I am trying to understand why the EUR/USD moved higher once again. I know that Jean-Claude Trichet saying that a rate hike was possible as soon as next month makes for a strong EUR. The Nonfarm Employment Change number came out better than expected; shouldn’t this have made the EUR/USD move lower?

I will try to answer my own question:
The only thing I can think of is that because the Unemployment Rate number was worse than expected. The Nonfarm Employment Change number is better than expected, however this is only in comparison to the previous month. While the overall Unemployment Rate is down this would make for an even weaker dollar correct?

I saw a few things in the news today. 1. negative trend in nonfarm and unemployment. 2. Unemployment reaching a new high in the last 16 months. 3. Wholesale inventories came out lower than expected and lower than the previous report. By far, unemployment had the largest effect today. With everyone looking for answers regarding the recession, unemployment rate plays a role, as if saying the recessoion is here and it's staying. Just because it beats estimates, doesn't mean it will have a positive effect. You have to look at trends and overall market direction.

Try reading some of the market commentary that comes out. It will give you an idea of who's thinking what and why.

It may have came out better than expected but it still came out worse than last time.

I thank both of you; my question has been answered fully!

The E/U moved up and maybe the only one that didn't retrace back little like what usually happens with news spikes.
The reason in my opinion is everything look to push Euro up:
1- Trichet did signal that they will move interest rate higher as soon as possible. This is the most positive news for Euro.
2- NFP, even it came little better then expected but it is still very bad for US economy, the country lost nearly 50K employees!!!
3- Unemployment jumped from 5.1 to 5.5 it usually moves 0.1 up or down but 0.4 in one time that is too much. This one did cause the big move up in E/U on friday.
4- Other bad news from US economy, and high CPI fro Euro countries.