Forex news for North American trade June 5, 2020:
- US non-farm payroll for May rose +2509K vs -7500K estimate
- Canada May employment +289.6K vs -500.0K expected
- CFTC commitments of traders. EUR longs increase.
- US consumer credit plunges -$68.78 billion vs. $-20 billion estimate
- Cristobal strengthens to tropical storm
- Baker Hughes oil rigs down to the 206 from 222 last week
- Trump says he thinks there will be 'surprises' on vaccines
- Canada May Ivey PMI 42.1 vs 23.6 prior
Markets:
- S&P 500 81 points to 3139 - record volume
- Nasdaq touches record high
- Gold down $32 vs $1681
- US 10-year yields up 5.5 bps to 0.87%
- WTI crude oil up $1.72 to $39.13
- NZD leads, CHF lags
The mode in the market has been slowly flipping from fear to greed and a shock jump in US employment sent it into overdrive. USD/JPY jumped to 109.75 from 109.25 on the headlines and it stuck around there most of the day.
The loonie also benefited from a strong Canadian jobs report as USD/CAD sank to 1.3400, and fell through the 200-dma.
Elsewhere in FX the result of the jobs report was garbled. The risk trade is dollar negative but bonds were getting beaten up after the numbers and that's a dollar positive. On net, you had a AUD and NZD flattish in New York trade on that paradigm.
The euro lost ground to the dollar and finished near the lows but I tend to point to position squaring as the culprit -- the pair had run higher for 9 straight days previously.
Cable tried the upside but didn't like the view from above 1.27 and slipped back down to 1.2670. The Brexit bears are relentless and comments from negotiators on both sides stressed the lack of progress.
A clearer picture of the risk trade was in gold (way down) and oil (way up) along with equities, which surged on extremely high volumes. There were some concerns late in the day with high-flying stocks reversing but that appeared to be rotation with other stocks holding up well.
See: The simple case for buying everything right now
