Jobs Report Gives Currency Traders Food for Thought

Canadian employment data today was forecast at being flat and yet forecasts were showing a slight rise in the unemployment rate from 6.8% to 6.9%. Data released today showed employment at 53,000 and Full-Time Employment at 81,300 and the Unemployment Rate at 6.9% the only inline forecast. Trade Balance figures for Canada were better than forecasts of $-1.6 billion at $0.53 billion. U.S. Non-Farm Payrolls released this morning at 156,000 below expectations of 178,000. The unemployment rate remains at 4.7%. U.S. Trade Balance figures showed imports continuing to expand over exports to $-45.2 billion from previous of $-42.6 billion.

The euro is trading slightly lower today on mixed euro-zone data. German retail sales and factory order released weaker than expected while euro-zone sentiment data for business reported better than expected. German factory orders fell 2.5% from the previous increase of 5.0% while German retail sales also dropped 1.8% from the previous increase of 2.5%.

The sterling is trading lower today as investors turn their focus on the Brexit risks and ignore the recent supportive domestic data. U.K. Service Purchasing Managers Index came in stronger than expected at 56.2 while labour cost for Q3 also surprised to the upside.

The Australian dollar is relatively flat today as it holds onto its recent gains. Domestic trade data released last night was supportive with the final trade balance reporting stronger than expected at 1.24 billion, beating the forecast of -0.55 billion. The previous figure was -1.12 billion.

Oil (WTI): $53.73

Gold: $1,178.27

Silver: $16.53

Dollar Index: 101.92

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