- 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).
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!