US Session Recap: Outstanding Nonfarm Payrolls leads the dollar along
7 February 2015, 10:36
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The US session was dominated by an outstanding performance of the Nonfarm Payrollsdata where 257k new jobs were created in January in a month that has historically disappointed the consensus.
The data was a surprise, given the state of the oil industry and expected job losses but nonetheless, it might now be expected for the forward guidance at the March FOMC meeting to shift somewhat. The patience language might be accompanied with note of this data.
Besides from that, oil was up, gold lower US stocks down a touch and the Eurogroup Chairman Dijsselbloem gave Greece a deadline of Feb 16th to apply for a bailout extension or lose its eurozone financial backing ahead of Eurozone ministers who will be meeting next Wednesday.
The EUR/USD is ending the week at 1.1318, below the 200 MA, with a high of 1.1486 and a low of 1.1312, dropping on the data and chopping its way through the mid point of the 1.13 handle to current levels, sitting static awaiting developments in Greece and in the EZ next week.
GBP/USD was in the same boat with a bid greenback taking the pair down from 1.5350 and mid point to the handle, stalling at 1.5250 before a test of 1.5210.
USD/JPY was a rally and a fast move of 120 pips higher before staging a further cent to the upside and defining the 119 handle as a fundamentally bullish zone again ahead of the key 120.00 and psychological level. The major dipped below the 119.00 level but was lapped up again by the bulls to close into positive territory.
The commodity space had gold down by over $30, crude up over a buck on a rally and the Aussie off its perch, taking it down from the highs it had made with such grace on the week to 0.7878 and was losing 100 pips in the volatility of the US jobs report. The CAD was unable to enjoy oil better bid over the numbers and ended up collecting supply at 1.2547 and a drift down to the close of 1.2515.
Key events:
Greece gets a Feb 16 deadline to apply for a bailout extension
Canadian January employment up 34.5K vs +5.0K expected
Canadian unemployment rate came as 6.6% vs 6.7% expected
US non-farm payrolls 257k vs 230k
Average hourly earnings up at 0.5% vs +0.3% expected
The data was a surprise, given the state of the oil industry and expected job losses but nonetheless, it might now be expected for the forward guidance at the March FOMC meeting to shift somewhat. The patience language might be accompanied with note of this data.
Besides from that, oil was up, gold lower US stocks down a touch and the Eurogroup Chairman Dijsselbloem gave Greece a deadline of Feb 16th to apply for a bailout extension or lose its eurozone financial backing ahead of Eurozone ministers who will be meeting next Wednesday.
The EUR/USD is ending the week at 1.1318, below the 200 MA, with a high of 1.1486 and a low of 1.1312, dropping on the data and chopping its way through the mid point of the 1.13 handle to current levels, sitting static awaiting developments in Greece and in the EZ next week.
GBP/USD was in the same boat with a bid greenback taking the pair down from 1.5350 and mid point to the handle, stalling at 1.5250 before a test of 1.5210.
USD/JPY was a rally and a fast move of 120 pips higher before staging a further cent to the upside and defining the 119 handle as a fundamentally bullish zone again ahead of the key 120.00 and psychological level. The major dipped below the 119.00 level but was lapped up again by the bulls to close into positive territory.
The commodity space had gold down by over $30, crude up over a buck on a rally and the Aussie off its perch, taking it down from the highs it had made with such grace on the week to 0.7878 and was losing 100 pips in the volatility of the US jobs report. The CAD was unable to enjoy oil better bid over the numbers and ended up collecting supply at 1.2547 and a drift down to the close of 1.2515.
Key events:
Greece gets a Feb 16 deadline to apply for a bailout extension
Canadian January employment up 34.5K vs +5.0K expected
Canadian unemployment rate came as 6.6% vs 6.7% expected
US non-farm payrolls 257k vs 230k
Average hourly earnings up at 0.5% vs +0.3% expected
