Dollar Rallies on Strong US Employment Data

Posted 8 December 2023

Dollar jumps in early US session, buoyed by a robust set of employment data. headline job growth exceeded expectations, narrowly missing 200k mark, while unemployment rate showed a decline. This data suggests a still-tight job market, raising concerns among some market participants that underlying inflation pressures may not be easing as hoped. Notably, strong wage […]

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Yen Robust on Strong Wage Growth Data, NFP to Determine Dollar’s Path

Posted 8 December 2023

Japanese Yen continues to dominate as the strongest currency for the week, finding additional support from Japan’s unexpectedly robust wage growth data. However, its rally is currently pausing, with global financial markets redirecting their focus towards the impending US non-farm payroll data. Dollar, currently ranking as the second strongest currency, faces a critical test with […]

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USD/JPY Weekly Forecast: Markets Peel Back Hopes for BoJ Policy Change

Posted 9 December 2023

JPY upside may be slowing as NFPs showed a robust US labor market. This week sees the FOMC in action and US inflation to drive volatility.

November Jobs Report: Unemployment Falls and NFP Print Beats Forecast, DXY Advances

Posted 8 December 2023

US Jobs data came in strong across the board today in a move which is likely to see Fed Chair Powell offer little in terms of a confirmation regarding potential rate cuts in 2024. Fed Swaps already pricing in less easing in 2024.

​​​FTSE 100 Grinds Higher while Dax 40 and S&P 500 Stall Ahead of US Employment Data

Posted 8 December 2023

​​Outlook on FTSE 100, DAX 40 and S&P 500 ahead of Friday’s NFP employment data.

Gold (XAU/USD) Primed for US NFPs, Is Another Price Shock on the Cards?

Posted 8 December 2023

Gold is one of many assets that is waiting for the latest US Jobs Report later in the session. This week gold started with a sudden burst of volatility – will we see the same again today?

Japanese GDP Strained by Rising Inflation and BoJ Spurs Hawkish Bets

Posted 8 December 2023

Business and consumer spending suffered in Q3 as rising inflation weighs on real wages. BoJ officials provided more detail on what future policy may look like, lifting JPY

AUD Forecast: Australian Households Managing Tough Financial Conditions, RBA’s Brischetto

Posted 8 December 2023

AUD prices held onto yesterday’s gains after the RBA’s Brischetto praised the ability of Australian households to meet financial obligations in difficult circumstances.

Strong than expected job data eases USD demand

Posted 8 December 2023

USD - United States dollar

Demand for the US dollar was down slightly to start the last trading session of the week. Rising costs for commodities and the US Economy showed strong jobs numbers, allowing traders to move their money away from USD.. The Non-Farm Payroll data for November released this morning showed an additional 199,000 jobs added last month. This was stronger than the 180,000 consensus that had been expected. Unemployment rates also fell, down to 3.7% from the previous 3.9%.

Key Movers

The EUR/USD pair showed some bearish movements. It traded near the key support level of 1.0760. While the euro traded neutral this morning looking for a clear direction amid inflation data out of the UK and Eurozone regions. German inflation eased in November and bolstered the case for a peak in eurozone interest rates. There have been rising expectations that the European Central Bank (ECB) will start cutting interest rates next year and today’s data supported this sentiment.

A UK survey of around 2,000 people expected goods and service costs to fall. Although a small sample size for the currency market, they results are small indicators as to what moves its central bank will make next.

The AUD followed the direction of improving risk sentiment today. The Reserve Bank of Australia’s (RBA) Andrea Brischetto noted the risk of financial stress on Australians with the continuing high interest rates and increasing unemployment. While this remains at the center of the RBA’s discussions, Australian households are coping, showing the resilience of the Australian economy.

The Canadian dollar made small gains against the USD to end the week. The USD/CAD pair traded up this morning at the 1.3594 levels. With a lack of Canadian data this morning, this is seemingly due to a rebound in oil prices. West Texas Intermediate (WTI) crude oil was up to start the session, getting back over $71 a barrel from the $69 range we saw yesterday. This movement was on the back of Russia joining in on the calls we have seen from Saudi Arabia to have the members of the Organization of the Petroleum Exporting Countries (OPEC) cut production to keep prices elevated.

Expected Ranges

EUR/USD: 1.0738 - 1.0812 ▼

GBP/USD: 1.2520 - 1.2610 ▲

AUD/USD: 0.6570 - 0.6691 ▼

USD/CAD: 1.3568 - 1.3656 ▼