Dollar jumps after US employment data posted an upside surprise to the markets. Non-farm payroll rose 146k in November versus expectation of 90k. While prior month’s figure was revised down from 171k to 138k, the combined two month number was also better than expectations. Also, another upside surprise was that unemployment rate dropped fro 7.9% to 7.7%, lowest level since December 2008. EUR/USD breaches 1.29 level right after the release while GBP/USD also also hit 1.60 even though both are still holding on to near term support level at 1.2880 and 1.5988. Nonetheless, USD/CHF broke through corresponding resistance of 0.9324, which is an indication of dollar strength against European majors. Meanwhile, USD/JPY is pressing recent resistance at 82.83. While dollar is strong, it’s overwhelmed by Canadian dollar which is also boosted by a spectacular employment report today. Job market data showed a massive 59.3k growth in November, comparing to expectation of 10k and October’s 1.8k. Also unemployment rate dropped from 7.4% to 7.2%, lowest level since March. USD/CAD is pressing a key near term support level at 0.9874 and much focus would be on this support level as break would likely send USD/CAD back to 0.9633 low and below in medium term.
EasyForexNews Research Team