Article Highlights

  • German industrial production drops by 0.6% vs. 0.5% uptick expected
  • US non-farm payrolls at 113K vs. 183K expected
  • US jobless rate slips from 6.7% to 6.6%
  • US labor participation rate at 63% vs. 62.8% previous
  • US average earnings up 0.2% vs. 0.0% previous
  • Canada added 29.4K jobs in January vs. 20K expected
  • Canadian unemployment rate at 7.0% vs. 7.1% expected
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NFP day price action is almost always a crazy event and last Friday’s release didn’t disappoint! The Greenback took hits early in the session when the big NFP figure missed estimates, coming in at 113K. However, traders soon focused on the good stuff, such as the drop in unemployment rate and increases in average earnings and labor participation rate.

By the end of the day risk appetite took over the markets and the dollar managed to recoup some of its losses. EUR/USD and GBP/USD didn’t give up their gains though as they closed above 1.3600 and 1.6400 respectively.

Meanwhile, the Loonie was also on top of its game after Canada printed better-than-expected labor figures. Full-time work increased by 50,500 in January, a relief after the 60,000 decline in December. USD/CAD dipped below 1.1000 on the news and the Loonie ended the day higher against the yen, temporarily breaking above 93.00.

We only have a couple of tier 2 Japanese data points up for today, so you might want to look at the Nikkei closely for direction on risk appetite. Also keep an eye out for a possible continuation of last Friday’s moves!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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