USD 
EUR 
GBP 
AUD
So it's Friday and we've got a wild one to wrap up the week - the US non-farm payrolls report just dropped and it's a doozy. The economy shed 23,000 jobs in July, which was pretty wild considering the consensus was expecting a gain of 80,000. If you were watching the dollar, you'd have noticed it took a hit right after the news broke. According to ForexLive, the data showed an economy significantly worse than believed, which isn't exactly what the Fed wants to see heading into their September meeting.
And honestly, it's not like the rest of the data was all that great either. May and June payrolls were revised down a combined 103,000, which doesn't exactly inspire confidence. BabyPips pointed out that US payrolls fell far below forecasts, and it's hard to see this as anything but a negative for the dollar. But, as we've seen before, the market can be weird - the Australian Dollar / US Dollar pair is still sitting at 0.7062, which isn't a bad spot considering the news. The British Pound / Swiss Franc pair is at 1.0902, and the Australian Dollar / Euro is at 0.6111, both of which are pretty flat on the day.
But what's really interesting here is what this means for the Fed's next move. Comments from Barkin suggested that the job data is consistent with a sector in weak balance, and that corporate earnings are quite strong - which doesn't exactly add up. If you were looking for a clear signal from the Fed, you didn't get one today. And with the unemployment rate and employment change data coming out of Canada, it's been a busy day for traders. The British Pound / Australian Dollar pair is still at 1.9099, which is worth keeping an eye on as we head into next week.
So what's next? Well, we've got a lot to digest over the weekend, and it'll be interesting to see how the market reacts on Monday. FXStreet pointed out that the one year inflation rate came in at 3.6%, which is worth noting, but it's the jobs data that's really driving the conversation right now. We'll see how it all plays out, but for now, it's looking like a pretty volatile week ahead.
Dollar Downturn
And honestly, it's not like the rest of the data was all that great either. May and June payrolls were revised down a combined 103,000, which doesn't exactly inspire confidence. BabyPips pointed out that US payrolls fell far below forecasts, and it's hard to see this as anything but a negative for the dollar. But, as we've seen before, the market can be weird - the Australian Dollar / US Dollar pair is still sitting at 0.7062, which isn't a bad spot considering the news. The British Pound / Swiss Franc pair is at 1.0902, and the Australian Dollar / Euro is at 0.6111, both of which are pretty flat on the day.
But what's really interesting here is what this means for the Fed's next move. Comments from Barkin suggested that the job data is consistent with a sector in weak balance, and that corporate earnings are quite strong - which doesn't exactly add up. If you were looking for a clear signal from the Fed, you didn't get one today. And with the unemployment rate and employment change data coming out of Canada, it's been a busy day for traders. The British Pound / Australian Dollar pair is still at 1.9099, which is worth keeping an eye on as we head into next week.
So what's next? Well, we've got a lot to digest over the weekend, and it'll be interesting to see how the market reacts on Monday. FXStreet pointed out that the one year inflation rate came in at 3.6%, which is worth noting, but it's the jobs data that's really driving the conversation right now. We'll see how it all plays out, but for now, it's looking like a pretty volatile week ahead.