EUR/USD, USD/CAD flows: Strong payrolls data, with revisions
Strong report, especially with revisions, further lifts mkt's end-year Fed bets
Gives dollar a boost and something to think about
Payrolls data does come in well above consensus at 172k, with prior months also revised up a good chunk (to 179k and 214k). Looks in aggregate to establish a very healthy trend well above stall speed and more in the solid growth zone, still suggesting overall renewed momentum. Other data broadly as expected. Unemployment stays at 4.3%, which is broadly viewed as tight side of neutral. Helps to firmer up the market shift to skewing pricing to an eventual hike, albeit not in a hurry.
USD reverses the morning losses and we could see some further re-think weigh on EUR/USD if the ECB is not too hawkish with its pre-emptive hike and data keeps asking questions of the Fed.
Canada report also posts unexpected strength in the month, driven by fulltime. EUR/CAD setback a decent 60 ticks on the releases and back to 1.61 support