THE TAKEAWAY: USD Change in Nonfarm Payrolls > +146K versus +85K expected, from +138K (revised from +171K) > USD Unemployment Rate > 7.7% versus 7.9% expected, from 7.9% > USD/JPY BULLISH
It seems that the concerns over the potential impact Hurricane Sandy may have had on the US labor market were overblown. The US labor market added +146K jobs in November, well-above the +85K forecasted by economists polled by Bloomberg News. Private Payrolls accounted for nearly the entire gain at +147K, a welcomed development. But the Nonfarm Payrolls report was not roundly strong: the October figure was revised lower from +171K to +138K. If Hurricane Sandy’s impact was seen anywhere, it may have best been reflected in the Unemployment Rate, which dropped to 7.7% from 7.9% amid a declining participation rate, which remains at multi-decade lows.
USD/JPY 1-minute Chart: December 7, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the releases, the USD/JPY rallied from 82.28 to as high as 82.82 within 15-minutes of the release. The pair did pullback, however, and was trading at 82.64, at the time this report was written.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail email@example.com
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.