U.S. Session Forex Recap – Nov. 10, 2014

  • US October NFP: 214K vs. 235K expected, 256K previous
  • US unemployment rate down from 5.9% to 5.8%
  • CA employment change saw 43.1K additional workers vs. 5K deduction expected, +74.1K last month
  • CA unemployment rate down to 6.5% vs. 6.9% expected, 6.8% previous

Profit-taking was the name of the game during the U.S. session, as forex traders priced in a slightly disappointing NFP report.

Overall, the NFP numbers are nothing to sneeze at. Uncle Sam saw a net addition of 214K non-farm payrolls in October, which is just below the 235K market expectations. Details also reveal that the last two months’ numbers were also revised higher by a net of 31K while jobless rate dropped to a six-year low of 6.8%.

As good as the numbers are though, traders still used the headline miss as a reason to take profits from their long dollar trades. Not only that, but they also focused on the weak average earnings growth, which only grew by 3 cents for the month.

USD/JPY fell by 70 pips to 114.62, EUR/USD shot up by 61 pips to 1.2455, GBP/USD inched 54 pips higher to 1.5875, and USD/CHF slipped by 53 pips to .9662. Even the comdolls got their piece of dollar bearish action with AUD/USD rising by 39 pips to .8633 and NZD/USD climbing by 51 pips to .7746.

Loonie bulls also got busy thanks to better-than-expected employment numbers from Canada. Unemployment in the Great White North fell to 6.5%, its lowest since November 2008, after adding a whopping net of 43,100 jobs in October. Analysts had only expected an addition of 5,000 jobs for the month.

Unsurprisingly, the oversold Loonie was pushed higher across the board. USD/CAD plunged by 107 pips to 1.1333 throughout the session, while CAD/JPY jumped by 34 pips to 101.14. EUR/CAD also saw a 61-pip drop to 1.4116, while GBP/CAD fell by 107 pips to 1.7992.

Today’s another big day for the comdolls with Australia’s home loans report on tap at 12:30 am GMT and China’s inflation numbers scheduled at 1:30 am GMT. Australia’s home loans already printed a 0.7% decline in September (vs. 0.4% decline expected), but so far it hasn’t weighed on the Aussie much.

Watch out for China’s annualized CPI, which is expected at 1.6%. A weaker reading could support slowdown concerns in China’s economy, and could affect risk appetite throughout the session (if not the day).

Good luck!

See also:

London Session Recap

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