USDJPY, H4
US Nonfarm payrolls increased 638,000 in October following the 672,000 (was 661,000) rise in September and the 1.493 million (was 1.489 million) gain in August for a net 15,000 upward revision.
Job gains were broadbased with the only weakness coming from the government, and this is a solid report across the board. The unemployment rate fell to 6.9% versus 7.9%, and is down from the record 14.7% in April. Earnings rose 0.1% versus 0.1% (was 0.1%) previously, for a 4.5% y/y clip compared to 4.6% y/y (was 4.7% y/y). Hours worked were steady at 34.8.
Household employment surged 2.243 million from the prior 275,000 gain, and the labour force bounced 724,000 from -695,000. The labour force participation rate edged up to 61.7% from 61.4%. The private service sector added 783,000 jobs versus 795,000 (was 784,000) previously, with goods producing employment at 123,000 compared to 97,000 (was 93,000) previously. Government jobs dropped -268,000 after the prior -220,000 (was -216,000 drop), with a -138,000 slide on the Federal side.
The Dollar, initially headed a bit higher after the jobs report, but then quickly reversed. USDJPY rallied to 103.48 from 103.35, before slipping again to 104.30 but remained above current trend lows at 103.17, set earlier today. EURUSD dipped toward 1.1865 from 1.1880, before moving back to test 1.1890. Equity futures remain in the red, though off earlier lows, while yields ticked slightly higher before pulling back.
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Stuart Cowell
Head Market Analyst
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