U.S. Session Recap – Sept. 8, 2014

  • US NFP report prints at 142K, weaker than 230K expected and 212K last month
  • US unemployment rate down from 6.2% to 6.1%
  • US average hourly earnings rose from 0.1% to 0.2%
  • CA employment change comes in at -11K vs. 10K expected, shows significant drop in private payrolls
  • CA unemployment rate still at 7.0%
  • CA IVEY PMI down from 54.1 to 50.9, still weaker than 55.3 expected
  • Ukraine and pro-Russian rebels sign cease-fired deal

Finally, a breather! Dollar bears finally had a chance to pounce last Friday after Uncle Sam’s NFP report widely missed market expectations.

Payrolls in the US only came in at 142K, which is a lot weaker than the 230K uptick that many were expecting and last month’s 212K reading. Unemployment rate dropped from 6.2% to 6.1% and average hourly earnings rose to 0.2% though, which is probably why the dollar hadn’t experienced a deeper selloff across the board.

EUR/USD hit an intraday high at 1.2988 before closing at 1.2951 while USD/JPY had dropped to an intraday low of 104.69 before closing just 9 pips lower for the day at 105.09. The comdolls also got a bit of action with AUD/USD and NZDUSD closing 15 and 33 pips higher than their session open prices respectively.

The Loonie also made headlines after Canada’s employment numbers surprisingly printed a lot weaker than market expectations. The private sector lost a whopping 111,800 jobs in August, which contributed to a net job loss of around 11,000 for Canada. Forex traders had been holding out for a net job gain of around 10,000 after the previous month’s 41,700 increase.

USD/CAD seesawed between 1.0904 and 1.0841 at the release of both Canadian and US employment reports, but eventually ended the day almost unchanged at 1.0881. CAD/JPY wasn’t so lucky though, as it slipped by 9 pips to 96.59 throughout the session.

Who will win this week’s tug-o-pips? We don’t have a lot of tier 1 reports to look forward to this week, but we do have China’s trade balance numbers scheduled for release during the Asian session. Reports printed a couple of minutes ago reveals a trade surplus of 49.8 billion USD, higher than the 40 billion USD expected. Keep close tabs on your comdoll setups in case we see significant price action!

See also:

London Session Recap

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