NFP beats expectations with 235K and January revised higher to 238K. The unemployment rate drops to 4.7%. Wages are up 0.2% m/m, slightly below predictions but the previous month was revised up. The “real unemployment rate” falls to 9.2%. All in all, a solid report.
The dollar is sliding across the board. It seems like a “sell the fact” phenomenon.
The US Non-Farm Payrolls report was expected to show a gain of around 185K (or 220K after the strong ADP). More importantly, wages carried expectations for a rise of 0.3% m/m and around 2.8% y/y.
The bar was very low for a rate hike in five days time. Fed Chair Janet Yellen basically told us that a hike is coming barring any disaster. Given the late publication, on the tenth, the Fed may have already had the data.
February 2017 NFP Data (updated)
Non-Farm Payrolls: 235K (exp. +185K, whisper 220K, last 227K before revisions)
Average Hourly Earnings 0.2% m/m with an upgrade to January: 0.2% against 0.1%, 2.8% y/y(exp. +0.3% m/m, last month 0.1% m/m, 2.5% y/y)
Revisions: +9K (-39KK last time).
Participation Rate: 63% (62.9% last month )
Unemployment Rate: 4.7% (exp.4.8%, last month 4.8%)
Private Sector: 227K (ADP showed 298K).
Real Unemployment Rate (U-6): 9.2% (previous: 9.4%).
Employment to population ratio: 60% (previous: 59.9%)
Average workweek: 34.4K (last month: 34.4).
NFP Currency Reaction
EUR/USD was around 1.06 enjoying the Draghi boost. The pair advances and challenges resistance at 1.0630.
GBP/USD was trading at low ground around 1.2160. A messy Brexit weighs.
USD/JPY traded on high ground at 115.40, reflecting USD strength.
USD/CAD was around 1.3507. CAD plunged with Crude.
AUD/USD traded around 0.7520.
NZD/USD traded around 0.6910, suffering the spilled milk.
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