U.S. Session Recap – December 9, 2013

  • US NFP clocks in at 203K vs. 185K expected
  • US jobless rate now at 7%, a 5-year low
  • US participation rate at 63% while ave. hourly earnings also rose by 0.2%
  • CA added 21.6K workers vs. 12.3K expected
  • CA unemployment rate still at 6.9%
  • US prelim UoM consumer sentiment at 82.5 vs. 76.2
  • China trade balance shows surplus ($33.8B vs. $21.20B expected) in November

NFP Fridays are always fun for forex traders and last Friday was no exception. The markets were all tuned in to the NFP report, which surpassed analysts’ expectations when it counted. The jobless rate fell to the Fed’s early target of 7% while the non-farm payrolls, average hourly earnings, and even the participation rate also signaled strength in the labor markets.

Not surprisingly, chances of the Fed tapering within the next few months increased, which then pushed the Greenback higher across the board. And with Uncle Sam also showing strength in other areas, investors figured that a bit of tapering might not hurt economic growth after all. This is probably why we saw a broad risk rally hours after the NFP report was released. EUR/USD, GBP/USD, USD/JPY, other yen crosses, and the comdolls were all in the green when the day ended.

Will the good vibes stay up to today’s Asian session? Over the weekend China released its surprisingly strong trade balance data, which could support the comdolls over the next few hours. We don’t have other major reports on tap for the rest of the session, so you might want to watch the Asian bourses’ performances for clues on the investors’ risk sentiment.

See also:

London Session Recap

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