Bumper jobs report leaves bears reeling -.....>

FOREX: Bumper jobs report leaves bears reeling

- Defying even the most bullish of expectations, May Nonfarm Payrolls showed the

US added over 2.5mln jobs over the month, pressing the unemployment rate lower

by over 1 percentage point. With the US labour market bouncing surprisingly

sharply from the April downturn, assets repriced for a far shallower near-term

economic downturn.

- Equities soared, bringing US equity futures within 200 points of alltime

highs, which slammed US fixed income markets as well as haven currencies. CHF

and JPY were particularly hard hit, resulting in EUR/CHF showing above 1.09 for

the first time since late 2019.

- Understandably, the USD was highly volatile post-release, but managed to

settle weaker, prompting the USD index to hit new multi-month lows.

- Focus for the coming week turns to the Federal Reserve rate decision. This

week's decision may have been complicated by the May jobs report, and markets

will be watching to see if this changes any approach to policy. Japanese GDP,

Chinese and US inflation data and prelim Uni. of Michigan confidence.