We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
US Dollar Surges Higher after US Economy Added +288K Jobs in June

US Dollar Surges Higher after US Economy Added +288K Jobs in June

2014-07-03 13:05:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points:

- June NFPs beat easily at +288K, Unemployment Rate drops to 6.1%.

- US Dollar runs higher; gains holding as US yields rise post-release.

- US 10-year Treasury Note yield ranges between 2.623% and 2.687% around data.

The June US Nonfarm Payrolls report was as good as market participants could have hoped for. Above trend jobs growth, an unexpected decline in the unemployment rate, and increasing wages all point to the same conclusion: the US economy’s Q1 decline was temporary, and Q2 growth should be much, much stronger.

The fifth consecutive month of plus-200K payroll growth is a positive anecdote for the US economy, as is the fact that the unemployment rate fell to 6.1%, its lowest level since September 2008. The household employment survey (which the unemployment rate is computed from) showed the economy added +407K jobs, and the participation rate was unchanged at 62.8%. These are solid internals; there is little indication that the rate of jobs growth should slow abruptly soon.

Here’s the better-than-expected US economic data that’s boosting US yields and the US Dollar ahead of the long holiday weekend:

Read more: Trade Setups in EUR/USD, USD/JPY, AUD/USD for ECB, NFPs

- Change in Nonfarm Payrolls (JUN): +288K versus +215K expected, from +224K (revised higher from +217K).

- Change in Private Payrolls (JUN): +262K versus +215K expected, from +224K (revised higher from +216K).

- Unemployment rate (JUN): 6.1% versus 6.3 % expected unch.

- Participation Rate (JUN): 62.8% unch.

See the US Dollar economic calendar for Thursday, July 3, 2014.

US Dollar Surges Higher after US Economy Added +288K Jobs in June

US yields have started to rise over the past month, and gains seen in the belly of the yield curve (3Y-7Y) this past week are supporting a modestly stronger US Dollar. Today’s data has resulted in a further firming of the yield environment. This bear steepening of the middle and long portions of the yield curve has proven to be US Dollar positive; greenback strength is contingent upon longer-term yields (10Y+) staying elevated.

EURUSD 1-minute Chart: July 3, 2014 Intraday

US Dollar Surges Higher after US Economy Added +288K Jobs in June

Charts Created using Marketscopeprepared by Christopher Vecchio

With US yields moving higher, the US Dollar has seen gains develop across the majors, in particular against the Euro and the Japanese Yen. The USDJPY’s sensitivity to yield changes was on full display, as the pair rallied to a fresh session high of ¥102.22 from ¥101.92 before the release. The EURUSD, in conjunction with ECB President Mario Draghi’s testimony beginning at 12:30 GMT, was sitting at its daily and weekly low of $1.3601 at the time this report was written.

Read more: Trade Setups in EUR/USD, USD/JPY, AUD/USD for ECB, NFPs

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.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.

DISCLOSURES

News & Analysis at your fingertips.