Continuum Economics
  • Search
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
  • Calendar
  • Forecasts
  • Events
  • Data
  • Newsletters
  • My Alerts
  • Community
  • Directory
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
    • All
    • Thematic
    • Tactical
    • Asia
    • EMEA
    • Americas
    • Newsletters
    • Freemium
    • Editor's Choice
    • Most Viewed
    • Most Shared
    • Most Liked
  • Calendar
    • Interactive
      • China
      • United States
      • Eurozone
      • United Kingdom
    • Month Ahead
    • Reviews
    • Previews
  • Forecasts
    • Forecasts
    • Key Views
  • Events
    • Media
    • Conference Calls
  • Data
    • Country Insights
    • Shadow Credit Ratings
    • Full CI Data Download
  • Newsletters
  • My Alerts
  • Community
    • FX
    • Fixed Income
    • Macro Strategy
    • Credit Markets
    • Equities
    • Commodities
    • Precious Metals
    • Renewables
  • Directory
  • My Account
  • Notifications Setup
  • Account Details
  • Recent Devices
  • Distribution Lists
  • Shared Free Trials
  • Saved Articles
  • Shared Alerts
  • My Posts
Published: 2024-01-05T13:48:19.000Z

USD, JPY, EUR, AUD flows: USD firm after stronger employment report

byAdrian Schmidt

Senior FX Strategist
-

Higher than expected payrolls and earnings, and lower than expected unemployment support USD gains.

 

The US employment report is clearly on the strong side of expectations, albeit modestly, with non-farm payrolls 46k above consensus, but private payrolls only 34k above, and, probably more importantly, average hourly earnings at 0.4% m/m. US yields and the USD are consequently higher, with USD/JPY and AUD/USD leading the way. The rise in US yields is comparatively modest and USD/JPY continues to look a little overdone approaching 146, but momentum is with it, and a test of the 146-146.50 resistance area looks likely. 


EUR/USD is also lower, but less substantially, with EUR yields also holding firm, although this looks less justified by the data. EUR/AUD continues to look like a clear case for medium term declines (along with EUR/JPY) but as long as equities weaken in the face of rising yields, the recent uptrend probably won’t reverse. For EUR/USD, there may be scope to 1.0850, but spread moves are modest and bigger declines will be hard unless we see EUR yields fall, while EUR/JPY could well need to print 160 before  a turn.


 

Continue to read the article for free
Login

or

or

Topics
Foreign Exchange
FX DM
Flows
EUR/USD-Commentary
USD/JPY-Commentary

GENERAL

  • Home
  • About Us
  • Our Team
  • Careers

LEGAL

  • Terms and Conditions
  • Privacy Policy
  • Compliance
  • GDPR

GET IN TOUCH

  • Contact Us
Continuum Economics
The Technical Analyst Awards Winner 2021
The Technical Analyst Awards Finalist 2020
image