September Nonfarm Payrolls missed the forecast and was lower than August
October 4, 2019
The September Non-farm payrolls came in low at 136K vs. 145k estimated. ADP employment change fell to 136k from a revised 168k in August. The dollar is weakening.
October 4, 2019
EUR/USD 1.0967 GBP/USD 1.2281 USD/CAD 1.3308 AUD/USD 0.6762 USD/JPY 107.01 USD/CNH 7.1136 USD/ILS 3.4822 USD/MXN 19.5179 USD/CHF 0.9956 USD/INR 70.8900
US non-farm payrolls increased 136k vs. expectations of a rise of 145k for September. August non-farm payrolls were revised up to 168k vs. previously released at 130k. The dollar fell on initial reaction to the release and has since erased losses.GBP
Sterling is trading below the 1.23 handle despite news that Brexit could be further delayed if a deal isn’t agreed upon by Oct 19. This is not supporting the pound as it is seen as kicking the can down the road vs. actually solving the issue.EUR
EUR/USD remains largely unchanged after initial reaction to US jobs data. The currency pair continues to trade below the 1.10 handle. Fed Chairman Jerome Powell’s speech later today could dictate further direction for EUR/USD.CAD
Loonie trades steady near a one-month low as oil remains under pressure. WTI crude is trading ~$52/bbl, its lowest level in almost two months. The slide in oil prices is partially attributable to growth in US crude inventories.ASIA/PACIFIC
The Indian rupee was flat after the Reserve Bank of India cut its benchmark interest rate by 0.25% to 5.15% - the rate cut was expected. The central bank also cut its GDP estimates for 2020 to 6.1%. The economy in India has been slowing this year as Prime Minister Modi attempts various reforms/modernizations.
China’s renminbi strengthened on market speculation the US will cut rates faster than China.
The Japanese yen is weaker vs. the dollar in volatile trading with traders reluctant to sell safe-haven assets before the weekend.