Breaking: Non-Farm Payrolls misses expectations with 145K, wages only 2.9% YoY, USD falls

Yohay Elam FXStreet

The US economy has gained only 145,000 jobs in December, worse than 164,000 expected. Moreover, wages have risen by only 0.1% monthly, 2.9% yearly against 3.1% projected. Revisions draw 14,000 from previous months' job gains.

The unemployment rate remains at 3.5% with the participation rate at 63.2%, both unchanged.

The dollar is down across the board. EUR/USD has recaptured 1.11 and GBP/USD is closer to 1.31. USD/JPY is off the highs, trading around 109.50.

Follow all the NFP updates live

Here is how it looks on the EUR/USD chart:

EURUSD after Non Farm Payrolls January 10 2020

Economists expected an increase of 164,000 jobs in the US in December, a moderate increase in comparison with the leap of 266,000 in November. Wage growth was forecast to remain steady at 3.1% yearly and rise by a monthly pace of 0.3% monthly.

Data leading to the publication mostly beat expectations with ADP's private-sector labor report printing 202,000 positions gained and the employment component of ISM's services sector survey advancing.

The US dollar has been rising throughout the week, benefiting from the upbeat economic statistics and also from safe-haven flows related to the standoff with Iran.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD declines toward 1.3500 as markets turn risk-averse

GBP/USD comes under bearish pressure and declines toward 1.3500 on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data, combined with the risk-averse market atmosphere amid a re-escalation of tensions in the Middle East weigh on the pair.

EUR/USD retreats below 1.1600 on modest USD recovery

EUR/USD struggles to gain traction and trades below 1.1600 in the second half of the day on Tuesday, even after the data from the Eurozone and Germany highlighted improving economic sentiment in August. The US Dollar (USD) benefits from the risk-averse market atmosphere as tensions in Middle East remain high, making it difficult for the pair to turn north.

Gold sticks to losses below $4,400 as USD recovers further from two-month low

Gold remains depressed below the $4,400 mark through the first half of the European session, snapping a two-day winning streak amid a broadly firmer US Dollar. Inflation risks stemming from higher oil prices back the case for at least one interest rate hike by the US Federal Reserve in 2026.

Crypto Today: Bitcoin, Ethereum, XRP falter amid escalating US-Iran tensions

Cryptocurrency prices are broadly correcting on Tuesday, with Bitcoin edging lower toward $64,000. Ethereum shows weakness amid ongoing narrow-range consolidation, while Ripple trades below $1.00, weighed down by falling technical indicators.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.