Article Highlights

  • U.S. initial jobless claims at 249K vs. 255K forecast
  • Challenger job cuts down 24.7% in Sept vs. previous 21.8% drop
  • Canadian building permits jumped 10.4% vs. 1.1% forecast
  • French President Hollande recommends tough Brexit negotiations
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The Greenback continued to advance across the board as traders are keeping their fingers tightly crossed for an upside NFP surprise. Meanwhile, the pound dropped like a rock on Hollande’s speech.

Major Events:

Another batch of strong U.S. reports – Medium-tier jobs indicators printed another round of strong readings, allowing traders to set their expectations higher for the September NFP report. Initial jobless claims carried on with its upbeat pace, showing a 249K figure versus the estimated 255K reading and the previous 254K figure.

Meanwhile, the Challenger job cuts report showed a sharper 24.7% drop in September, reflecting a larger decline in joblessness compared to the earlier 21.8% slide. Make sure you take a look at these other jobs-related figures if you’re planning on trading the NFP release.

Hollande calls for hard Brexit – The French President still seems to be feeling bitter about the United Kingdom’s decision to break up with the rest of the EU, suggesting that the negotiating team should make things tough for the Brits. The gloves are off, people!

In a short speech during his dinner date with EU top dogs namely European Commission President Jean-Claude Juncker and Brexit negotiator Michel Barnier, Hollande called for firmness in maintaining that nations cannot leave the EU and still enjoy the same advantages (read: access to the single market) as it used to. This comes after U.K. Prime Minister May set the date for the start of their divorce proceedings in March next year.

Major Market Movers:

GBP – Hollande’s remarks certainly did a number on the pound, which spiked to levels not seen since George Soros’ heyday.

GBP/USD plummeted to a low of 1.1484 before scurrying back up to 1.2400, GBP/JPY tumbled to a low of 123.66 then recovered to 128.50, EUR/GBP surged to a high of .9359 then fell back to .9000, and GBP/NZD dove to a low of 1.6620.

USD – The Greenback chalked up a slightly stronger performance for the day, driven by risk-off flows and upbeat leading jobs indicators.

EUR/USD crawled from 1.1184 to 1.1139, USD/JPY advanced from 103.60 to a high of 104.15, USD/CHF popped up from .9781 to a high of .9819, AUD/USD slid from .7589 to a low of .7564, and USD/CAD is back up to 1.3250.

Watch Out For:

  • Chinese banks closed for the holiday
  • 12:00 am GMT: Japanese average cash earnings (0.5% expected, 1.2% previous)

See also:

London Session Recap

Asian Session Recap

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