- 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!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!