Forex Europe Review – Euro rises after US non-farm payroll, dollar jumps against yen

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EURUSD remained steady throughout the session and held on to gains from the post-ECB actions to shore up European banks from yesterday. EURUSD opened Europe at 1.3426 and remained range bound between 1.3415 and 1.3462 as investors were hesitant to push up the euro further and were cautious ahead of U.S. jobs data. Immediately after the non-farm payroll report, euro shot up by 50 pips to 1.3498 as 103,000 jobs were created in the US, versus the expected 60,000.

 

GBPUSD continued its ascent from yesterday to rise to as markets digested the news of the Bank of England’s policy decision, investors were optimistic in the pound. Yesterday the BoE announced it will reactivate its bond-purchase program to help revive the U.K.’s sluggish economy. Pre US jobs data, cable peaked at 1.5548, and after the better than expected NFP, sterling jumped to 1.5596 against the dollar, as risk sentiment was boosted.

 

The Canadian dollar surged across the board after Canada’s unemployment rate was pushed lower to 7.1 percent in September from 7.3 percent in August as 60,900 new jobs were added last month, more than the forecasted 10,000. USDCAD tumbled from 1.0391 to 1.0338 within a minute. Meanwhile, the Canadian dollar was boosted further after the US non-farm payroll report which showed 103,000 new jobs created versus the projected 60,000. The US is Canada’s major trading partner. USDCAD fell further on the news to hit a session low of 1.0234 as improved market sentient strengthened risk currencies like the Canadian dollar.

 

USDJPY was flat most of the session, trading a 76.57-76.70 range until the release of US jobs data. The dollar jumped to 76.90 on news that more jobs were created in the US showing that the US economy is beginning to improve and is not heading back into a recession, and therefore this boosted market sentiment.

 

USDCHF was flat in the session, opening at 0.9200 and was traded a 0.9180-0.9220 range. Euro remained strong against the Swiss franc after surging yesterday following ECB announcements. Investors are still cautious on the possibility of the Swiss National Bank raising the 1.20 francs per euro floor it put in place on September 6 to curb franc strength. Switzerland’s unemployment rate released today remained unchanged at 3 percent and did little to move the currency. EURCHF hit a session high of 1.2385.