US Dollar Remains Unsteady Despite Strong NFP Report

Market Reviews

The US dollar is trading mixed despite better than expected employment data. US non-farm payrolls (NFP) rose 250k in October, above expectation of 200k. Prior month’s figure was revised down from 134k to 118k. Unemployment rate was unchanged at 3.7%, matched forecasts. Average hourly earnings rose 0.2% mom in October, matched expectations. US trade deficit widened to USD -54.0B in September.

The euro is trading as the strongest one, together with Swiss franc, despite weak manufacturing data. The single currency is also lifted by German-Italian yield spread narrowing. German 10 year yield is up 0.0253 at 0.427. Italian 10 year yield is down -0.054 at 3.326. Spread continues to narrow.

Eurozone manufacturing PMI was finalized at 52.0 in October, down from 53.2 in September. Among the countries, Italy PMI manufacturing dropped to contraction at 49.2, hit a 46-month low. France reading dropped to 51.2, a 25-month low. German reading dropped to 52.2, a 29-month low. Also released today, UK PMI construction rose to 53.2 in October, up from 52.1 and beat expectation of 52.1.

Canadian dollar is the second weakest after employment data missed expectations. Canadian employment market grew 11.2k in October, below expectation of 25.0k. Unemployment rate dropped to 5.8%, below expectation of 5.9%. Trade deficit narrowed to CAD -0.4B but missed expectation of CAD 0.2B surplus.

On stock markets, FTSE added 0.75%, DAX gained 1.56%, CAC rose 1.34%. Earlier in Asia, Nikkei closed up 2.56%, Hong Kong HSI added 4.21%, China Shanghai SSE gained 2.70%, Singapore Strait Times increased 1.81%.