Free Trial

NFP provides Goldilocks foundation for........>

FOREX
FOREX: NFP provides Goldilocks foundation for risk-on trade
-Friday's Nonfarm payrolls hit the highest level in 18 months, beating
expectations by 50%. As is often the case, markets didn't know which way to turn
upon release but the combination of a strong jobs gain headline and a better
participation rate with the lower-than-expected wage gains numbers suggested
this labor market may still be far from full employment. As a result, markets
bought up riskier currencies, emerging markets, commodities and equities, to the
detriment of haven currencies and treasury bonds.
-The better NFP number twinned with firmer oil prices lifted NOK to the top spot
in G10 FX, with AUD and CAD following close behind. CAD got a further
shot-in-the-arm from Canada's jobs report, which saw the unemployment rate
unexpectedly drop.
-JPY is the poorest performer, allowing USD/JPY to climb to Y107 just after NY
cut, at which over $4bln of options rolled off.
-Focus next week turns to US inflation numbers and retail sales, speeches from
ECB's Draghi and BoC's Poloz as well as an ECOFIN meeting in Brussels.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.