Article Highlights

  • ADP non-farm employment change at 153K vs. 171K forecast
  • U.S. initial jobless claims at 235K vs. 262K consensus
  • U.S. ISM non-manufacturing PMI unchanged at 57.2 vs. 56.6 forecast
  • U.S. crude oil inventories down by 7.1 million barrels
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Another day, another loss! The Greenback took another hit from its rivals after leading jobs indicators hinted of a downside NFP surprise.

Major Events:

Weak U.S. jobs indicators – It’s NFP Friday, people! But before all the excitement, let’s take a look at how the earlier jobs reports fared. The latest ADP non-farm employment change reading slipped from 215K to 153K in December, worse than the projected 171K figure. Meanwhile, Challenger reported a 42% jump in job cuts at the end of 2016, its largest monthly rise in layoffs in nearly a couple of years.

And that’s not all, the jobs component of the ISM non-manufacturing PMI survey also missed expectations even as the overall reading was unchanged at 57.2 for December. The employment sub-index was down from 58.2 to 53.8 to show a slower pace of growth for the month, hinting at a potential NFP disappointment. If you’re planning on trading this top-tier event, don’t forget to check out Forex Gump’s NFP Trading Guide.

More crude oil gains – Black Crack had another positive day, lifted by a larger than expected draw of 7.1 million barrels in U.S. stockpiles according to the U.S. Energy Information Administration. To top it off, reports indicating that Saudi Arabia has complied fully with the OPEC output deal to trim production starting this month also gave the commodity an extra lift. WTI crude oil rose to $53.69/barrel while Brent crude oil climbed back to $57/barrel.

Major Market Movers:

USD – Dollar bulls felt a tinge of doubt about the Fed’s rate hike timeline after leading jobs indicators hinted of a possible NFP miss.

EUR/USD popped up from 1.0489 to the 1.0590 area, GBP/USD rallied from 1.2300 to a high of 1.2432, USD/JPY dipped from 116.67 to 115.28, USD/CHF tumbled from 1.0210 to 1.0120.

Watch Out For:

  • 12:30 am GMT: Australian trade balance (-0.55B AUD expected, -1.12B AUD previous)

See also:

London Session Recap

Asian Session Recap

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