Markets are mildly buoyant following this morning’s upbeat US jobs data for November. Weakness in the topline data point – Change in Nonfarm Payrolls – was more than offset by improvements in the Unemployment rate, which included huge improvements in Black and Hispanic employment, and solid gains in the Labor Force Participation Rate. Equities are higher on the news, bond yields are higher, and the US dollar is slightly higher. Oil and gold are both up small.
December 3, 2021
EUR/USD 1.1297 GBP/USD 1.3255 USD/CAD 1.2755 AUD/USD 0.7049 USD/JPY 113.52 USD/CNH 6.3764 USD/ILS 3.1622 USD/MXN 21.2583 USD/CHF 0.9193 USD/INR 75.1700 USD/BRL 5.6299 USD/SGD 1.3710 USD/DKK 6.5815 USD/SEK 9.1350 USD/NOK 9.1271
After an initial sell-off, the dollar is trading higher following this morning’s upbeat US jobs data for November. Drawing a conclusion from the various jobs releases was more complicated than usual, as a surprisingly weak Change in Nonfarm Payrolls figure –210K versus expectations of +550K and October’s +628K (revised higher) – was more than offset by a drop in the Unemployment from 4.2% to 4.6%, a better Labor Force Participation Rate from 61.6% to 61.8%, and Underemployment Rate from 8.3% to 7.8%.GBP
The UK pound is lower on the upbeat US jobs data and a stronger dollar. As expected, UK PMI data for November came in basically unchanged from October. Traders await comments from the Bank of England’s Michael Saunders about the outlook for inflation and monetary policy.EUR
After a surge in the euro in European trading, EUR has fallen slightly following upbeat US jobs data and a stronger dollar. Eurozone PMI data for November came in a bit weaker than expected.CAD
The CAD is the top-performing currency overnight, up nearly 0.5%, despite the upbeat US jobs data and the broadly stronger US dollar, but buoyed by higher oil prices.ASIA/PACIFIC
JPY and CNY are barely changed overnight.
AUD and NZD were among the weakest performers overnight, both losing nearly 0.7%. The AUD/USD continues to trade within a strong month-long downtrend, as it approaches $0.70 and to its lowest level since early November.
This article is intended for U.S. audiences only.
©2022 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.