US jobs rise, but less than expected - wages growth sluggish

Published date: 07/12/2018

Markets were looking for job gains of close to 200k this afternoon, and even though the rise was a respectable 155k, the miss on the headline has prompted a hit on the USD, though we are seeing familiar levels containing some of the major pairings.  Adding to the negative reaction is the 0.2% rise in wages, and again, although there is no reason to be overly bearish on the labour market, there is a distinct lack of follow through from rising employment and this is a concern.  

We also saw the previous month revised a little lower from 250k to 237k, while average weekly hours were also down from 34.5 to 34.4.  

EUR/USD has shot up through 1.1400, though sellers are still not giving way as we continue to run into offers around the 1.1415 level.  This area represents the highs seen over Dec so far and traders continue to lean against these levels against the broader narrative that the US economy is still in far better shape than most of its other counterparts.  

We also see USD/JPY dipping and finding buyers, though this is somewhat of a predictable stance, with strong resilience seen on the downside, and around the 112.30 level especially.  

AUD, CAD and NZD are all higher, but less so CHF, while GBP is the really struggling for upside traction as sellers keep coming in ahead of 1.2800.


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