The US Nonfarm Payroll report for January was released this morning. Amazingly, an increase in jobs of 467K was reported versus expectations of 125K, and December’s revision was up to 510K. US T-Bond 10Yr yields jumped 5 bps to 1.89%, the S&P improved from an earlier sell-off and the dollar rallied. The euro is still firm from yesterday’s hawkish comments by the European Central Bank and is on track for its best week since the start of the pandemic. Oil prices continue to climb to a fresh seven-year high.
“Through endurance we conquer.”
February 4, 2022
EUR/USD 1.1434 GBP/USD 1.3521 USD/CAD 1.2775 AUD/USD 0.7062 USD/JPY 115.28 USD/CNH 6.3650 USD/ILS 3.2026 USD/MXN 20.7075 USD/CHF 0.9240 USD/INR 75.000 USD/BRL 5.3257 USD/SGD 1.3461 USD/DKK 6.5065 USD/SEK 9.1450 USD/NOK 8.7755
This morning the US Nonfarm Payroll report showed an increase in jobs of 467K, which handily beat expectations of 125K. Traders awaited this data as it was an indication of how the US economy is faring from the Omicron variant. The positive news has resulted in the DXY jumping 0.25%.GBP
After a strong week for sterling, GBP/USD started today moderately down due to the overall stronger dollar. As expected by traders, the BoE raised interest rate by 0.25% on Thursday. Several members of the BoE voted for a 0.50% increase, which would have been the largest rate hike for the UK in the past 25 years.EUR
EUR/USD continued to climb following yesterday's announcement from the ECB that they plan to review updated inflation data at their next meeting in March. This announcement was important as Europe has been in a negative interest rate environment for nearly a decade. This announcement has caused a euro rally, which was muted by positive jobs data out of the US.CAD
Canadian employment fell by more than 200K jobs in January, which was a larger miss than expected. Unemployment was forecasted at 6.3%, but it came in at 6.5%. Oil prices reached new highs for the week with intraday gains of 1.3%. Despite the uptick in oil prices, the loonie depreciated 0.77% against the dollar with USD/CAD climbing to the upper end of 1.27.ASIA/PACIFICThe AUD/USD pair had a sell-off today after the RBA indicated a patient approach toward rising inflation in Australia and from rising US bond yields.
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