Forex news for New York trading on Friday, October 6, 2017
- September non-farm payrolls -33K vs +80K expected
- Canada September employment 10.0K vs +12.0K expected
- North Korea may test long-range missile - Russia
- ECB's Villeroy: QE reduction compatible with keeping accommodation
- September Canada Ivey PMI 59.6 vs 56.0 expected
- US August wholesale sales +1.7% m/m vs +0.0% m/m expected
- Fed's Dudley: Economy on track despite storms, fundamentals favorable
- Fed's Bullard: Negative jobs number 'startling' even given the hurricane
- Bill Gross: Dec Fed hike a 'slam dunk', bonds threaten major trendline
- Fed's Kaplan: It's likely inflation pressures are building
- US Commerce Dept imposes preliminary duties on Bombardier jets
- Baker Hughes US oil rig count 748 vs 750 prior
- NY Fed GDP tracker rises to 1.53% from 1.46%
- Tropical storm Nate expected to strengthen into hurricane Saturday
- Goldman Sachs' Hatzius: Most important part of jobs report was revisions
- Fed's Bostic: If economy grows as expected, would be comfortable with Dec hike
- Bostic: He's in wait-and-see mode on December hike
- Fed's Bostic: US has seen sustained strong jobs growth
- Fed's Kaplan: I'm open minded on December, not there yet
- CFTC Commitments of Traders: Sterling longs get caught wrong-footed
- US August consumer credit outstanding +$13.065B vs +$15.54B expected
Markets:
- Gold up $7 to $1275
- WTI crude down $1.46 to $49.33
- S&P 500 down 3 points to 2549
- CAD leads, GBP lags
The market was laser-focused on the wage numbers as non-farm payrolls were released and that led to a quick move higher in the US dollar, around 40 pips across the board with USD/JPY particularly strong, climbing to a high of 113.44 from 112.95 before the data.
Then the questions started. There was non-stop talk that wages could have also been skewed by the storms (something we warned about beforehand) and USD/JPY began to roll over, slipping to about 113.00. At the same time, the headlines about a North Korean missile test hit and it was all over for the dollar as it fell to US lows, at 112.60.
It was the same story in EUR/USD as the pair slipped to 1.1670 only to rebound and rally to 1.1737 and finish at the best levels of the day.
Cable was beaten up in Europe early then bounced on headlines saying Theresa May had the confidence of Cabinet. It was shortlived as the pair fell on the jobs report but along with everything else it climbed back later. Still, the pound finished the day a half-cent lower.
The Canadian dollar was the other big story as no hurricanes hit Canada and full-time jobs were extremely strong along with very good wage growth. USD/CAD was caught in the USD crossfire at first and oil falling didn't help but eventually the loonie found its legs and USD/CAD sank to 1.2538 from 1.2575, down 25 hard-fought pips on the day.
Gold is another chart to have a look at. It fell to $1260 but rebounded on the North Korea talk to $1275 to break a miserable streak of trading.
Another one to take a look at is the 10-year note. Yields touched 2.40%, which is a very big technical level, before retreating to 2.36%.
Have a great weekend and thanks for reading.
