The US non-farm payrolls report and unemployment rate for September were released Friday morning.
Big Boost
Prior to the announcement, the consensus was for 215K net new jobs. The actual number came out at 248K, a significant increase over expectations. In addition, August’s worse-than-predicted 142K figure was revised up to 180K.
The prior consensus was for the unemployment rate to remain at 6.1%. The actual rate came out lower at 5.9%, which is also significantly better than had been anticipated.
Overall, the key numbers that were released on Friday morning were substantially better than expected.
US stock index futures had advanced prior to the announcement. After the announcement, stock prices initially increased even further.
Immediately after the announcement, the US dollar rose sharply, as can be seen on the EUR/USD, which dropped down from the 1.2600 handle to approach the 1.2500 price area. This extends the steep bearish trend for the already-embattled currency pair, marking a new two-year low. The next downside targets reside around the 1.2450 and then 1.2300 levels.
USD/JPY rose sharply from the 109.00 level to continue its recent bullish run and approach its six-year high of 110.00, which was reached earlier this week. A major target further to the upside resides around the 114.00 level.
Gold plunged briefly below the 1200 level after the announcement, continuing its recent declines toward its long-term lows around the 1180 price level.
From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.