After spiking through 1.25, the EUR/USD pair is dropping on positive U.S. nonfarm payroll numbers and a missed Eurozone producer price index.

USD gets a boost with jobs data

EUR/USD closed above 1.25 yesterday for the first time since December 2014 after reports that some European Central Bank officials are calling for clearer guidance on interest rates.

Data released this morning shows that the U.S. added 200,000 jobs in January, compared to the 180,000 estimated. The bigger highlight here is average hourly earnings increased 2.9% year over year – the most since June 2009. The unemployment rate held at 4.1%, as expected.

EUR/USD is dropping near the 1.24 midpoint on the news. The USD/JPY pair rose above 110 on the data release after hitting multi-month lows earlier this week. The stronger dollar is also supported by the U.S. Treasury bond selloff as the 10-year benchmark hits 2.83%.

We’ll see how long the wage data keeps this dollar rebound going and if it can convince traders and investors that inflation in the U.S. is improving and the dollar won’t fall further.

GBP/USD drops below 1.42

After holding above 1.42 Thursday, cable is plummeting to the low 1.41s on U.S. jobs data and the missed U.K. construction PMI. The pair is reversing the strong upward motion of yesterday.

Both countries have experienced political tensions as of late. The U.K.’s Brexit withdrawal bill is putting some uncertainty on the pound. Prime Minister Theresa May tried to ease concerns on Friday, saying that a transition agreement with the E.U. would be reached in seven weeks.

Next week, the U.S. government will again have to thwart off a government shutdown. The end of the previous stopgap funding bill is Feb. 8 and there isn’t a permanent deal in sight, making another temporary funding bill that lasts into March the leading solution.