U.S. Session Recap – April 7, 2014

  • US NFP at 192K vs. 200K expected
  • US unemployment rate at 6.7% vs. 6.6% estimates
  • CA adds 42,900 workers in March vs. 22,500 expected
  • CA unemployment rate drops from 7.0% to 6.9%
  • CA IVEY PMI misses at 55.2 vs. 57.2 expected
  • Has ECB designed 1trillion EUR worth of QE?
  • Nasdaq, S&P 500, and U.S. Treasury yields drop on risk aversion
  • China celebrates Tomb Sweeping Holiday

What a day for the major currencies! Uncle Sam started the U.S. session with a bang when it printed a not-so-awful jobs report. Non-farm payrolls reached 192,000 for the month of March, which just missed last month’s 197,000 reading and the expected 200,000 number.

A lot of investors weren’t happy with the miss. U.S. stocks took a beating with Nasdaq dropping by a whopping 2% and S&P 500 slipping by 1.3% while U.S. Treasuries also experienced weaknesses! Not surprisingly, the Greenback weakened against the yen and its comdoll counterparts. USD/CAD in particular experienced a 70-pip drop in one hour after Canada’s employment reports surprised to the upside.

The dollar would have weakened against the European currencies too if not for the rumors that ECB head Mario Draghi and his gang are preparing for QE to the tune of 1 trillion EUR. This, coupled with Draghi’s dovish remarks on Thursday, did not do EUR and GBP any favors.

The yen turned out to be king of pips in Friday’s U.S. session trading after a weakness in U.S. equities and Treasury yields sparked risk aversion and USD/JPY weakness. USD/JPY, EUR/JPY, and GBP/JPY all dropped by around 100 pips from its pre-NFP prices before the end of the day.

Will the Asian session traders follow through with last Friday’s trading? China is on a bank holiday and only the ANZ job ads report from Australia is scheduled for release so we might not see any fireworks over the next couple of hours. Still, keep your eyes peeled for any surprises!

See also:

London Session Recap

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