Article Highlights

  • U.S. employment up by 211K in Nov vs. 201K forecast
  • U.S. Oct NFP figure upgraded from 271K to 298K
  • U.S. jobless rate unchanged at 5.0% in Nov
  • U.S. average hourly earnings up by 0.2% as expected
  • Canadian employment down by 35.7K in Nov
  • Canada’s jobless rate rose from 7.0% to 7.1%
  • Canadian Ivey PMI rose from 53.1 to 63.6 vs. 55.3 forecast
  • OPEC decided against lowering oil production levels
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Was it all too good to last? The euro returned some of its recent gains on Friday’s forex trading sessions while the U.S. dollar got a tiny boost from the upbeat NFP results.

Major Events:

Strong NFP report – The U.S. economy added 211K jobs in November, higher than the projected 201K gain, while the previous month’s reading was upgraded from 271K to 298K. Wage growth was also seen, as average hourly earnings rose 0.2% as expected, and the jobless rate stayed 5.0% for the month.

All systems go for a Fed liftoff then? Most likely. Recall that FOMC policymakers have specified that they’d like to see more signs of jobs growth in the U.S. economy before deciding to tighten monetary policy, and the latest NFP release seems strong enough to push them in that direction.

Data from Canada – Mixed but mostly weak. The employment report for November churned out downbeat results, as the part-time election-related positions were vacated. On the other hand, the Ivey PMI surprised to the upside with its climb from 53.1 to 63.6 to indicate a much faster pace of industry expansion.

OPEC announcement – What a buzzkill! Most forex market watchers had been anticipating an oil production cut from the OPEC last week, especially since crude oil has been sliding again and hurting profitability among oil-producing companies and countries. Instead, the OPEC announced that they plan to keep pumping out oil at their current pace, reviving fears of a global supply glut and putting more downward pressure on prices.

Major Currency Movers:

USD – The Greenback made a pretty nice comeback on Friday, recouping a few of its losses from earlier on in the week, although the gains were muted due to a pickup in risk appetite.

EUR/USD retreated from a high of 1.0975 to close at 1.0871, USD/JPY popped up from the 122.50 minor psychological support area to 123.21, USD/CHF bounced from a low of .9872 to land back above the 1.0000 mark, and GBP/USD reversed course upon reaching the 1.5150 area to retest support at the 1.5100 handle.

CAD – A lot of movement but not much direction for the Loonie. The Canadian currency was pushed around by downbeat jobs data, the OPEC announcement, and an upbeat Ivey PMI.

USD/CAD paced back and forth between 1.3300 and 1.3400, CAD/JPY made a quick rally to the 92.50 area then tumbled to a low of 91.53, EUR/CAD cruised sideways at 1.4600, and GBP/CAD struggled to hold on to 2.0200.

Watch Out For:

  • 1:30 am GMT: Australia’s ANZ job advertisements (0.4% previous)
  • 6:00 am GMT: Japanese leading indicators (101.6% previous, 102.9% expected)

See more:

Asian Session Recap

London Session Recap

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