Friday's Session Focuses On Key U.S. Jobs Report

Friday’s session was all about the run up to the key Jun US jobs report, and with numbers earlier in the week suggesting a strong headline read, this was duly confirmed by the 287k rise in jobs, though the downward revision from 38k to 11k in May had many scratching their heads. The unemployment rate also rose slightly on a small change in the participation rate, but average earnings eased off to take the shine off the initial reaction. USD/JPY had tested pre-100.00 levels ahead of the release, rallying through 101.00 in the aftermath to run into offers around 101.20-25, and the pull back then saw the market put in a stronger test of 100.00 again, holding by a tick to recover once more. Similar moves in EUR/USD saw pre 1.1000 bids tested, but the subsequent spike through 1.1100 was met with heavy selling also. Strong gains for AUD and NZD both before and after the jobs report, with the latter matching the pre Brexit high at .7300 post release, but holding off any further gains for now despite strong gains on Wall Street. This is also helping AUD/USD maintain better levels, but we continue to run into strong offers on the mid .7500s. Sentiment in CAD is not so rosy, with the hit on oil price yesterday pulling the spot rate into a higher range. Canadian employment fell 0.7k vs a 5k rise expected to prompt renewed upside move, but pre 1.3100 looks well offered despite consistent bounces from sub 1.2900 levels. Into next week, we have plenty of Fed speakers to dissect the data, with some voicing a potential Sep move by the Fed based on today’s headline rise. China top tier data headlined by Q2 GDP, June trade and industrial production. In the UK, the BoE meeting includes the minutes, but no press conference, but still carries plenty of event risk in the wake of the Brexit vote. Still no news on the final election count in Australia, but this should be finalised over the weekend; unemployment due midweek.