US Nonfarm Payrolls rose at a much slower pace than expected in November. However, an underwhelming print did little to undermine the USD. Economists at TD Securities think it will be very difficult to sell the USD as a thematic strategy given the global monetary policy setup.

Fed's hawkishness to be a significant offset to a USD retreat

“Payrolls were +210K, well below expectations, and revisions added a relatively modest 82K. Hourly earnings were also not as strong as expected: +0.3% MoM and 4.8% YoY. In contrast, the household survey data were extremely strong, with unemployment down 0.4pt to 4.2%, even with a 0.2pt rise in the participation rate.”

“With a hawkish Fed profile in place (faster taper and likely hawkish SEP forecasts), USD dips should be shallow (especially vs. funding currencies).”

“We expect 1.12/14 in EUR/USD, dips faded sub-113 in USD/JPY and USD/CAD fatigue in 1.28/29.”

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD fades bounce off the recently flashed 20-year low of 0.9553, around 0.9630 heading into Monday’s European session, as bears keep reins amid a broad risk-off mood. ECB’s Lagarde, Germany IFO numbers eyed for intraday directions.

EUR/USD News

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD remains mostly inactive after declining to the all-time low. Doubts over UK’s fiscal stimulus to generate economic benefits, Russia-Ukraine woes led the bears. Hawkish Fedspeak, firmer US data also exerted downside pressure on the cable pair.

GBP/USD News

Gold seems vulnerable to test sub-$1,600 levels Premium

Gold seems vulnerable to test sub-$1,600 levels

Gold kicks off the new week on a weaker note and drops to its lowest level since April 2020 during the Asian session. Buying the US dollar and selling everything else remains a key theme in the markets, which turns out to be a key factor weighing on the dollar-denominated commodity. 

Gold News

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.

Read more

Week Ahead: Euro eyes Italian elections and flash CPI, dollar may take a backseat

Week Ahead: Euro eyes Italian elections and flash CPI, dollar may take a backseat

With the Fed meeting out of the way, a quieter week is on the horizon, barring of course any flare up of tensions between Russia and Ukraine. Either way, the spotlight will probably fall on the euro as far-right parties are expected to gain ground in Italy’s parliamentary election on Sunday.

Read more

Forex MAJORS

Cryptocurrencies

Signatures