- U.S. Jan employment up by 151K vs. 189K expected
- U.S. Dec NFP downgraded from 292K to 262K
- U.S. jobless rate dipped from 5.0% to 4.9%
- Canadian employment change at -5.7K vs. +5.2K expected in Dec
- Canada’s unemployment rate rose from 7.1% to 7.2%
- Canadian Ivey PMI jumped from 49.0 to 66.0 vs. 50.3 forecast
- Chinese banks closed for the holiday
Weak jobs data? So what?! The Greenback managed to score big gains against its forex rivals on Friday, despite a downbeat January NFP report.
U.S. employment report – I’m seeing red! The January NFP report came in weaker than expected with a meager 151K gain in hiring, much slower than the estimated 189K gain. To make things worse, the previous month’s report was downgraded to show a 262K increase in employment from the initially reported 292K figure.
On a more positive note, the unemployment rate dipped from 5.0% to a nine-year low of 4.9% even as labor force participation improved from 62.6% to 62.7%. In addition, average hourly earnings rose by 0.5% versus the projected 0.3% gain, suggesting that the labor market slack is being absorbed and that wage growth is present.
Canadian jobs and manufacturing data – In contrast, Canada’s jobs report wasn’t so upbeat, as the economy shed 5.7K jobs in January instead of showing the estimated 5.2K gain. Because of that, the unemployment rate rose from 7.1% to 7.2% with energy-rich Alberta reporting huge declines in full-time hiring.
Still, the Ivey PMI was able to surge from 49.0 back to the expansionary territory at 66.0, outpacing the projected improvement to 50.3 to indicate a much stronger pace of growth in the industry.
Major Currency Movers:
USD – The Greenback tossed and turned upon seeing the results of the NFP report before picking a strong bullish direction.
AUD/USD plummeted by more than a hundred pips to .7100, EUR/USD retreated to a low of 1.1119, USD/JPY bounced off the 116.50 minor psychological mark to a high of 116.98, and GBP/USD fell to a low of 1.4453.
- 12:00 am GMT: Japanese average cash earnings (0.7% expected, 0.0% previous)
- 12:30 am GMT: Australia ANZ job advertisements (leading indicator of jobs gains)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!