USD Melt Down, Weak Numbers
Non-Farm Payrolls came out pretty much as expected, 223k jobs added, most forecasts were around 230k. In fact the positive number saw the green back jump against major currencies, EUR, GBP and JPY. After 10 minutes however the Green back had subsided to pre-figures prices. On release of the numbers the Euro jumped from 1.1264 to 1.1286 but within the next 10 minutes was trading down at 1.1193, Cable had a similar price movement going from 1.5434 to 1.5460 and was back down at 1.5372 within 10 minutes. Against the JPY the USD enjoyed a 10 min rally going from 119.91 to 120.20 to then fall back down to 119.59 over the next 45min. I like looking at price movement straight after figures are released as they can be revealing about what the market was expecting and may offer insight to the next move. What I see above shows the market needs some really impressive data to get the USD rally back on track and we may be in for sideways action while the market tries to figure out if the economy is really stalling or not, which will decrease the likelihood of a rate hike in September.