Brocker.Org: NFP Prints +211k; Focus Moves to Fed-Speak, French Elections

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Talking Points:

– April NFP Printed at +211k versus an expectation of +190k, while March was revised lower by -19k to a revised total of -79k. Below, we look at updated price action in both EUR/USD and USD/JPY.

– The week is far from over as a series of Fed-speakers on the calendar for later today could provide a healthy dose of volatility to markets; and after this week’s close, French elections are on the calendar, and this carries considerable gap risk for markets, especially those carrying Euro-exposure.

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April’s Non-Farm payrolls were released at 8:30 AM ET this morning, and the headline number printed at +211k versus the expectation of +190k and the prior print of +98k. That prior print was revised-down by -19k jobs to give March a revised total of +79k; but the attention grabbing aspect of this morning’s report was a reduction in the unemployment rate to 4.4%, which would be the lowest read since 2007.

The immediate-response was mixed, as the Dollar strengthened against the Yen but weakened against the Euro. In the minutes since that initial-pop, Dollar weakness took over as attention averted to a series of Fed-speakers slated to speak later in the day. Stanley Fischer is at 11:30, John Williams is at 12:45, and at 1:30 we hear from Janet Yellen, James Bullard, Charlie Evans and Eric Rosengren. So, today is far from over.

DXY touched-down to a fresh five month low as the report was filtering into markets.

NFP Prints +211k; Focus Moves to Fed-Speak, French Elections

Chart prepared by James Stanley

Going along with that Dollar-weakness was a new intermediate-term high in EUR/USD as the pair marched towards the 1.1000 psychological level. There’s a healthy dose of risk here going into the weekend with the second round of French elections. While many are appearing to be pricing-in a Macron-win, there are a considerable number of undecideds in many of those poll numbers; and if recent history has taught us anything, it’s to keep on open mind around political polls with a large number of respondents reporting as undecided.

NFP Prints +211k; Focus Moves to Fed-Speak, French Elections

Chart prepared by James Stanley

One pertinent takeaway from this morning’s report is the response of Yen weakness. On the initial release of NFP, USD/JPY popped-higher after which USD-weakness began to take over. But buyers stepped-in fairly quickly to bid prices-higher.

NFP Prints +211k; Focus Moves to Fed-Speak, French Elections

Chart prepared by James Stanley

— Written by James Stanley, Strategist for DailyFX.com

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