Article Highlights

  • US NFP report: 280K vs. 225K expected, 221K previous
  • US unemployment rate: 5.5% vs. 5.4% expected and previous
  • US average hourly earnings: 0.3% vs. 0.2% expected, 0.1% previous
  • US labor market participation rate: 62.9% vs. 62.8% previous
  • CA unemployment rate remains at 6.8% as expected
  • CA employment change: 58.9K vs. 10.2K expected, -19.7K previous
  • CA quarterly labor productivity: -0.1% vs. 0.2% expected, 0.3% previous
  • OPEC keeps production quotas unchanged
  • Japan’s final GDP, China’s trade balance reports on tap
  • Australia on Queen’s Birthday holiday
Partner Center Find a Broker

NFP Fridays tend to be volatile for forex traders and last Friday was no exception. How did the major currencies trade anyway?

The dollar raked in most of the pips after Uncle Sam’s highly-awaited NFP report printed better-than-expected numbers. Not only did the non-farm payrolls clock in at 280K (vs. 225K expected), but average hourly earnings also ticked higher than the expected 0.2% growth.

The cherry on top of the NFP sundae was the uptick in labor participation rate from 62.8% to 62.9%, a reason why trader shrugged off the unemployment rate inching higher from 5.4% to 5.5%. With more workers looking for jobs, getting more jobs, and getting higher wages, it’s no wonder the dollar bulls partied like there’s no tomorrow.

USD/JPY was under the spotlight with its 111-pip trek (+0.89%) to its 125.86 intraday high before closing at 125.64. Ditto for EUR/USD, which shrugged off strong euro zone reports and fell by 117 pips (-1.04%) to 1.1111. GBP/USD also fell to a low of 1.5191 before closing 66 pips lower (-0.43%) to 1.5270 while USD/CHF popped up by 157 pips (+1.68%) to .99486 before ending the day at the .9400 handle.

The NFP report wasn’t the only headline-maker though. Canada’s labor market numbers also got attention with its better-than-expected prints. Canada added 58,900 jobs in May with both full and part-time workers finding jobs.

USD/CAD’s losses were limited by dollar strength with only a 58-pip drop (-0.46%) to 1.2439, but CAD/JPY saw a 119-pip hike (+1.19%) to 101.00 while EUR/CAD fell by 212 pips (-1.51%) to 1.3821.

Comdoll traders will have another chance at seeing more forex volatility today with China releasing its trade balance numbers. Market players are expecting a 44.8B USD surplus after showing a 34.13B USD surplus last month. Exports are seen to drop by 4.4% from last month’s 6.4% slip while imports are expected to drop by 10.0% after dropping by 16.1% last month.

Good luck and good trading!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

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