USDJPY, H4

US nonfarm payrolls increased only 75k in May after a revised 224k jump in April (was 263k) and 153k March gain (revised from 189k). That’s a net -75k in revisions. The unemployment rate was steady at 3.6%. Average hourly earnings were up 0.2%, as in April, for a 3.1% y/y clip versus 3.2% y/y previously. Average hours worked held at 34.4. The labour force bounced 176k from -490k, with household employment up 113k from -103k. The labor force participation rate was unchanged at 62.8%. Private payrolls were up 90k, with the goods producing sector adding 8k, construction up 4k, and manufacturing up 3k. Jobs in the service sector increased 82k with a 27k gain in health and a 26k increase in leisure, while retail trade employment dropped 8k, with IT down 5k. Government jobs declined 15k.

The jobs report is big miss and will increase speculation for a Fed rate cut. Risks for an easing this year have increased following the weak jobs report, and particularly with the slowing in the pace of earnings growth. Action as soon as the June 18, 19 FOMC meeting seems unlikely however (the next meeting is July 30, 31). It’s hard to tell how much of the slowing is a function of trade and other uncertainties, or a tight labour market. And most Fed officials have indicated they want to see how the trade frictions impact and how the economy plays out in coming months. Though there are low expectations for any action later this month, the softer wage data certainly leaves the door open for a move and will give the FOMC cover.

EURUSD rallied to 1.1310, USDJPY breached 108.00 and GBPUSD 1.2745. Gold continues to rally and holds $1340 and USA500 touched 2859.80.

USDJPY

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

Forex Majors

Cryptocurrencies

Signatures