North American Summary and Highlights 6 Jun
Overview - The USD advanced before and after a resilient non-farm payroll release. Post-data USD gains were led by USD/JPY.
North American session
Equities and UST yields both picked up on a slightly stronger non-farm payroll increase of 139k, even with 95k in net negative revisions. Average hourly earnings saw an above trend 0.4% increase and unemployment was unchanged at 4.2%. USD gains were largely felt in USD/JPY, which saw highs above 145 from 144.25. EUR/USD saw lows below 1.14 from marginally above, but settled near the figure. EUR/GBP was little changed but EUR/CHF edged lower.
Canadian employment saw an unexpected rise of 8.8k though unemployment rose to 7.0% from 6.9%. USD/CAD saw little reaction to the data but eventually edged marginally higher to 1.37. AUD/USD was little changed, bringing marginal gains in AUD/CAD.
European morning session
The USD was generally firmer through the European morning, gaining around 0.2% across the board, with the exception of USD/CAD, which gained just 0.1%. EUR/USD corrected most of Thursday’s post-ECB press conference gains, and EUR yields dropped back this morning.
There wasn’t any noticeable reaction to the morning’s data. Eurozone Q1 GDP was revised up sharply to 0.6% q/q from the 0.3% originally reported, with a 9.7% q/q rise in Ireland largely responsible. Ex-Ireland GDP rise just 0.2%. Earlier, German industrial production was weaker than expected, falling 1.4% m/m in April, but the underlying trend continues to show evidence of growth.