Market wrap: nonfarm payrolls surprised us all - Westpac
|Analysts at Westpac offered a market wrap from last week's eventful closing session in the US markets.
Key Quotes:
"Global market sentiment: A surprisingly strong US payrolls report boosted US interest rates and the US dollar, as well as US equities (the S&P500 up 0.9% to a record high). Expectations of Fed rate hikes firmed.
Interest rates: US 10yr treasury yields rose from 1.49% to 1.59%, while US 2yr yields rose from 0.64% to 0.72%. Market pricing of the Fed funds rate firmed, now implying around a 30% chance of a rate hike in September, a 55% chance by December, and 100% by Sep 2017.
Currencies: The US dollar index jumped in response to the payrolls data, later paring gains to close +0.5% on the day. EUR fell from 1.1160 to 1.1046, closing at 1.1086. USD/JPY rose from 101.04 to 102.06. AUD fell from 0.7660 to 0.7598, closing at 0.7619. NZD fell from 0.7215 to 0.7122. AUD/NZD rose from 1.0620 to 1.0680. "
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.