News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Japanese #Yen Outlook: $USDJPY Rebound Eyes Resistance into #NFP -https://t.co/k8p36uNsBC https://t.co/MqQGpSUqzL
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.33% 🇨🇦CAD: 0.32% 🇬🇧GBP: 0.30% 🇨🇭CHF: -0.00% 🇪🇺EUR: -0.04% 🇯🇵JPY: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/bfJnHyzJyn
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.10% Gold: -0.42% Silver: -0.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/j3TGJrmNvp
  • Fed's Kashkari says crypto is 'wild west' of fraud and hype - BBG $BTCUSD #Bitcoin
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.57%, while traders in France 40 are at opposite extremes with 79.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/hWcwkuvBVF
  • FDA developing Covid vaccine booster plan DJ via BBG
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.03% Germany 30: 0.02% Wall Street: -0.02% US 500: -0.03% France 40: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/bVWZM0rAFe
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/U6wIThJkpw
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.11% Gold: -0.43% Silver: -0.87% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/AOIbh73rp3
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.68%, while traders in France 40 are at opposite extremes with 78.98%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yK7jFjbjiP
EUR/USD Slammed, USD/JPY Surges as October NFPs Crush Expectations

EUR/USD Slammed, USD/JPY Surges as October NFPs Crush Expectations

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- US economy added +271K jobs in October, +87K above the forecast.

- Unemployment rate drops as wages accelerate to fastest pace in post-GFC world.

- EUR/USD trades as low as $1.0707 after the report.

Mark your calendar for December 16: markets are aggressively pricing in the first Federal Reserve rate hike for next month after today’s exceptionally strong October US Nonfarm Payrolls report. The US Dollar is soaring across the board this morning after the October jobs figure blew past expectations, reaffirming the belief that the US economy is approaching the event horizon of the end of ZIRP. Underscoring the strong headline jobs figures – and perhaps the icing on the cake for the Fed – was the growth in wages, which reached the fastest pace since the financial crisis of 2008/2009.

Ahead of the data, Fed funds futures contracts were giving an implied probability of 56% for a Fed rate hike in December; after the data, market measures had jumped to suggest that there was a 74% chance of a Fed rate hike next month. The chart below highlights how aggressively markets are anticipating the Fed to move on rates:

EUR/USD Slammed, USD/JPY Surges as October NFPs Crush Expectations

Here are the data that’s sent the US Dollar to fresh daily, weekly, and yearly highs:

- USD Change in Nonfarm Payrolls (OCT): +271K versus +184K expected, from +137K (revised lower from +142K).

- USD Unemployment Rate (OCT): 5.0% as expected from 5.1%.

- USD Average Hourly Earnings (OCT): +2.5% versus +2.3% expected, from +2.2% (y/y).

- USD Labor Force Participation (OCT): 62.4% unch as expected.

See the DailyFX economic calendar for Friday, November 6, 2015

EURUSD 1-minute Chart: November 6, 2015 Intraday

EUR/USD Slammed, USD/JPY Surges as October NFPs Crush Expectations

After the data releases, the US Dollar saw precipitous gains across the board, and has yet to relent. EUR/USD initially sunk from $1.0864 to as low as $1.0707, and was last trading at $1.0735. Meanwhile, USD/JPY jumped to as high as ¥123.04 from ¥121.92, and was trading at ¥122.72 at the time this report was written.

Read more: Trade Setups in EUR/USD, USD/JPY, USD-pairs for October NFPs

--- Written by Christopher Vecchio, Currency Strategist

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