North American Summary and Highlights 6 November
Overview - The USD picked up on stronger than expected employment data. USD/CAD was particularly firm with Canada’s employment report coming in weak.
North American session
The US employment report was clearly stronger than expected in all major details, payrolls up 165k, unemployment 4.1% from 4.2%, with average hourly earnings up by 0.4%. This gave the USD support while equities were mixed following Thursday’s sharp fall. USD/JPY moved back to 158.50 and EUR/USD slipped back to 1.1150.
Canada’s employment report in contrast saw a third straight decline, by 4.7k, with unemployment up to a 6-month high of 6.7% from 6.5%. USD/CAD surged to 1.4140 from 1.4060. AUD/USD remained weak but fairly stable just above 0.6850.
European session
Still all about the post-election accelerated pressure in AI/tech over the last few sessions. Nikkei and Kospi off 6%, having been off steeper still, latter testing the early year Fed-Mar lows. The baton-pass to Asia risk-off fed into pressure on the high beta counters with AUD and NZD off just under 1%. EUR also weighed back from the recent dollar slippage lift and back towards 1.1100 - 1.1130 support.
Nasdaq currently seeing a 1.3% bounce from the late Europe/NY slump yesterday, but it hasn’t regained the 27200 Aug low break nor really made a big dent in Thursday’s wide bar, so this can’t be considered more than intraday consolidation at this point.
DXY held the test of 101~ congestion/figure and has managed a bit of a bounce. Sentiment and flows though remain very erratic in the current episode. German industrial production 0.7% (mkt flat) from 2%. UK Lloyds house price index -0.6%m/m vs mkt 0.1%.