6 Dec 2014
US Session recap: and the title? "Nonfarm Payrolls"!
FXStreet (Guatemala) - USD has been underpinned by the release of the Nonfarm payrolls data in the US session. What was needed was an extraordinary figure for the market to react in any great way to the release and that is exactly what we got.
The Nonfarm Payrolls came in at 321K, which puts the twelve-month average now up to 278K. This is significant and the highest yet in an increasing trend over the past few years along the US's recovery. The next FOMC meeting is on December the 17th which is going to set the tone for the beginning of 2015, but until then, the markets will make their own minds up and this jobs report has shifted the greenback into a much higher gear. On the week, The Yen, AUD and NZD were the biggest losers to the dollar.
EUR/USD made a low of 1.2271, supported to some extent by EUR/JPY demand at the end of the week as it broke into new highs, but overall, the EUR was a fade on attempts against the trend of a stronger dollar, such as when factory orders were released, but was wearing losses of over a cent move on the release of the Nonfarm Payrolls data.
USD/JPY was relentless and marked out higher grounds into the 121 handle with a high of 121.69 from a low of 119.71, showing the market its moves again, and boy can it move when it gets going! Again, the US factory orders were the only dent in its bonnet on a strong performance and brings in the 2007 highs at 123.95 into the picture.
USD/CAD leaped up towards 1.1480 making a high of 1.1476 before supply drove the pair lower and into a drift from 1.1415 to 1.1445. WTI was sliding on lower US factory orders while Poloz sees lower oil prices a threat to growth, revising his forecasting by +0.8% and explaining that it will be a dent of 0.33% in growth for 2015.
GBP/USD was breaking lower, marking out territory below the November bottom, and brings us fresh lows to work from at 1.5569.
Key events
US October factory orders down vs expectations
US Non farm payrolls smashing expectations by 91k
US unemployment rate in line with expectations
Canadian November employment disappointing
The Nonfarm Payrolls came in at 321K, which puts the twelve-month average now up to 278K. This is significant and the highest yet in an increasing trend over the past few years along the US's recovery. The next FOMC meeting is on December the 17th which is going to set the tone for the beginning of 2015, but until then, the markets will make their own minds up and this jobs report has shifted the greenback into a much higher gear. On the week, The Yen, AUD and NZD were the biggest losers to the dollar.
EUR/USD made a low of 1.2271, supported to some extent by EUR/JPY demand at the end of the week as it broke into new highs, but overall, the EUR was a fade on attempts against the trend of a stronger dollar, such as when factory orders were released, but was wearing losses of over a cent move on the release of the Nonfarm Payrolls data.
USD/JPY was relentless and marked out higher grounds into the 121 handle with a high of 121.69 from a low of 119.71, showing the market its moves again, and boy can it move when it gets going! Again, the US factory orders were the only dent in its bonnet on a strong performance and brings in the 2007 highs at 123.95 into the picture.
USD/CAD leaped up towards 1.1480 making a high of 1.1476 before supply drove the pair lower and into a drift from 1.1415 to 1.1445. WTI was sliding on lower US factory orders while Poloz sees lower oil prices a threat to growth, revising his forecasting by +0.8% and explaining that it will be a dent of 0.33% in growth for 2015.
GBP/USD was breaking lower, marking out territory below the November bottom, and brings us fresh lows to work from at 1.5569.
Key events
US October factory orders down vs expectations
US Non farm payrolls smashing expectations by 91k
US unemployment rate in line with expectations
Canadian November employment disappointing