USD stronger after jobs data, GBP & CAD on the move
USD: USD surges after very strong jobs data, EUR/USD loses the ground it made up last week (1.1070 mid) and GBP/USD loses ground from yearly highs (1.3130 mid), article below from FXStreet:
The US unemployment rate edged lower to 3.5% in November, 3.6% expected.
Wage growth inflation also bettered expectations and ticked higher to 3.1%.
October's Nonfarm Payrolls reading revised up to 156,000 from 128,000 earlier.
The US Bureau of Labor Statistics reported this Friday that Nonfarm Payrolls increased by 266,000 in November as compared to October's upwardly revised reading of 156,000 (128,000 reported previously) and surpassed market expectations pointing to a reading of 180,000.
The data provided a goodish intraday boost to the greenback, lifting the key US Dollar Index to daily tops around the 97.65 region.
The big day next week is Wednesday when the Fed Central bank decision and press statement is announced.
GBP had a very strong week, reaching yearly highs vs CAD, AUD EUR and USD. The prospect of a Conservative victory in the general election (12th Dec) and a not-hung parliament is the reason, overshadowing some recent poor fundamental data.
EUR: Poor German data (industrial output reading was -1.7% in October) this morning confirms yet more weak data in Europe – after Germany narrowly missed a technical recession in October, the EUR is in need of some support.
Next Tuesdays ZEW data will be closely watched.
Next week sees a new ECB President (Christine Lagarde) take the helm, and although no dramatic change is expected in monetary policy or QE purchases, the details of the strategic review will be interesting.
CAD: The central bank left rates on hold this week, but added some hawkish wording. USD/CAD fell dramatically to 1.3230, as the CAD found support, with the centrl bank saying that economic resilience was good, shown by decent business expenditure (shrugging off previous worries about consumer spending and the construction sector).