Posted on 6th December 2019
It's the first Friday of the month. For traders that means a quiet morning and potentially hectic afternoon, three letters... NFP. For those of you who don't know, Non-farmers payroll (NFP) is the biggest event on the economic calendar, pencilled in for the first friday afternoon (GMT) of the month every month!
Novembers NFP results were nothing short of dissapointing, providing a lot of questions for traders regarding the US economy. Are we going into a recession? Is this the first sign of the economy slowing down? A lot of concern was floating around about the greenback, and rightly so! However that was all put to bed this afternoon with what can only be described of astonishing results. With 185K predicted for the result, no one expected it to come out as high as it did at 255k! The number was always going to be higher than november due to 40,000 GM employee's were on strike and taken off the report, so an improvement was expected.
The Dollar responded postively through the afternoon trade at its highest for the week. Is this the kickstarter to reach back up to the 98.40 handle we've talked about previously? Only time will tell, but this was certainly a welcome surprise for the greenback.
We'll wait to see where the dollar is taken next week. Technically the downside is still the preffered route, but with positive dollar news we could see it settle down and prepare for an attempt to break through its current ceiling, sending us back into a dollar driven market.
Time will tell!