Strong than expected job data eases USD demand
Daily Currency Update
Demand for the US dollar was down slightly to start the last trading session of the week. Rising costs for commodities and the US Economy showed strong jobs numbers, allowing traders to move their money away from USD.. The Non-Farm Payroll data for November released this morning showed an additional 199,000 jobs added last month. This was stronger than the 180,000 consensus that had been expected. Unemployment rates also fell, down to 3.7% from the previous 3.9%.Key Movers
The EUR/USD pair showed some bearish movements. It traded near the key support level of 1.0760. While the euro traded neutral this morning looking for a clear direction amid inflation data out of the UK and Eurozone regions. German inflation eased in November and bolstered the case for a peak in eurozone interest rates. There have been rising expectations that the European Central Bank (ECB) will start cutting interest rates next year and today’s data supported this sentiment.A UK survey of around 2,000 people expected goods and service costs to fall. Although a small sample size for the currency market, they results are small indicators as to what moves its central bank will make next.
The AUD followed the direction of improving risk sentiment today. The Reserve Bank of Australia’s (RBA) Andrea Brischetto noted the risk of financial stress on Australians with the continuing high interest rates and increasing unemployment. While this remains at the center of the RBA’s discussions, Australian households are coping, showing the resilience of the Australian economy.
The Canadian dollar made small gains against the USD to end the week. The USD/CAD pair traded up this morning at the 1.3594 levels. With a lack of Canadian data this morning, this is seemingly due to a rebound in oil prices. West Texas Intermediate (WTI) crude oil was up to start the session, getting back over $71 a barrel from the $69 range we saw yesterday. This movement was on the back of Russia joining in on the calls we have seen from Saudi Arabia to have the members of the Organization of the Petroleum Exporting Countries (OPEC) cut production to keep prices elevated.
Expected Ranges
- EUR/USD: 1.0738 - 1.0812 ▼
- GBP/USD: 1.2520 - 1.2610 ▲
- AUD/USD: 0.6570 - 0.6691 ▼
- USD/CAD: 1.3568 - 1.3656 ▼