NFP: The Aftermath
Matt Simpson | Jan 10, 2014 05:18PM ET
To put this into perspective the chart below shows that Frida's was the lowest NFP number since June 2012. Whilst jobs are still being created the market will no doubt be questioning the timing of the FED's tapering as this does raise uncertainty to the validity of the recent positive numbers coming out from the US. Whilst we are still experiencing expanding industry across manufacturing and services, the recent PMI releases came in less than expected to suggest the market is becoming a little too optimistic of the US recovery.
To further quantify the disapointing NFP release it is the lowest reading since May 2011, coming in -122k less than expected.
How The Markets Reacted:
The news was not good for USD and we saw the Greenback weaken across most of the majors with the excception of GBP and CAD. MOney flowed into Gold and SIlver as a flight to safety with US INdices managing to hold their ground after an initial sell-off.
- US EQUITIES: reacted by selling off but closed the day recouping most of their gains.
- US TREASURIES: signalled further 'risk off' as 5, 10 and 30-year bonds sold off from their highs to close at the lows
- METALS: Money flowed into Gold, Silver and Platinum on the back of the release to further weaken the USD
- AUD/USD: traded back upto 0.90 and closed near the high of the day and week.
- EUR/USD: broke above the pivotal 1.3650 area and maintained the bullish trendline
- GBP/USD: dailed to break and close above 1.650 resistance and closed the day back at the open price
- NZD/USD: closed the week back near the highs and is the stringest single currency of the year so far
- USD/CHF: sold down to 0.90 where it has since found support
- USD/JPY: sold down to a daily loiw of 103.80 to close the day with a BEarish Engulfing bar and potential double top formation
- USD/CAD: broke to new highs, making CAD the weakest single currency of the year so far
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