North American Summary and Highlights 3 May
Overview - The USD slipped on weaker than expected US employment data but subsequently reversed most of its losses.
North American session
The US non-farm payroll was softer than expected with a 175k increase, with a rise in unemployment to 3.9% and a 0.2% increase in average hourly earnings on the soft side too. The USD immediately sold off, EUR/USD moving above 1.08 from around 1.0750 and USD/JPY falling below 152 from above 153.
However most of the USD’s gains subsequently erased, EUR/USD stabilizing around 1.0770 with USD/JPY only marginally below 153. GBP/USD fully erased its post-data bounce while USD/CAD ended slightly firmer. A weaker ISM services index of 49.4 had little impact with prices paid rising to 59.2 from 53.4. Fed’s Bowman expressed hawkish concern on inflation, while the normally dovish Goolsbee described the payroll data as very solid.
European morning session
EUR/USD gained around 10 pips through the European morning, with similar gains for most of the other European currencies. The NOK outperformed, with EUR/NOK dropping around 6 figures following the Norges Bank meeting and statement which suggested rates would likely remain at current levels for a longer period than previously thought.
USD/JPY edged a little higher but hovered close to 153 after the JPY gains seen in the Asian session and the previous 24 hours.