- The Bloomberg Dollar Spot Index rises 0.3%; on the week, the greenback is nearly unchanged
- The yield on 10-year Treasuries rises 7 basis points to 4.37%
- US payrolls rose 303K versus 214K forecast, the unemployment rate fell to 3.8%, as forecast, while average hourly earnings slowed to 4.1%
- READ: US Jobs Roar Again as Payrolls Jump 303,000, Unemployment Drops
- “Though the Fed doesn’t typically cave to pressure, it has to come to a head at some point. My view is that the June calls will definitely be adjusted back though,” said Helen Given at Monex, who expects a first rate cut in July. “Again – US exceptionalism has become so normalized over the last year a huge figure is almost seen as commonplace by traders”
- BBDXY implied volatility fell after the US jobs data amid share gains
- USD/CAD jumps the most in nearly two months, rising 0.8% to 1.3644, its highest level since November. The Canadian economy lost jobs in March with unemployment rate rising
- READ: Canada Unexpectedly Shed Jobs, Unemployment Rose to 6.1%
- One-week risk reversal surges to 0.46% in favor of greenback calls, highest level in a year
- “The diverging nature of the twin employment data brings the theme of CB divergence back into play. Yes, activity north of the border has been better than expected, but expect the Bank to lean a bit more in the direction of a softer labour market backdrop,” writes Bipan Rai of CIBC; sees possible extension to 1.3700/30 into next week’s Bank of Canada meeting
- USD/JPY rises as much as 0.3% to session high of 151.75 before settling
- Focus remains on the 152 level that may prompt official intervention
- EUR/USD slides 0.3% to 1.0801 with drop slowed by option expiries at 1.0800
- EUR/CHF rallies by as much as 0.3% to 0.9802; the pair heads for a ninth weekly advance
GBP/USD slides 0.4% to 1.2586, dipping below its 200-day moving average
