The U.S. Dollar is improving this morning as a result of the impressive Non-Farm Payroll figures in the Employment Situation.
Overview
The change in payrolls added was significant as 266K jobs were added instead of the estimated 180K. Additionally, the figure for the prior month of October was revised upward and the Unemployment Rate decreased from 3.6% to 3.5%. One disappointment could be noted in Average Hourly Earnings, which failed to improve by the 0.3% pace expected, coming in just at 0.2%
It is clear, once again, that the situation in the U.S. is much better than the rest of the globe as other regions experience contractionary figures across various sectors of their respective economies. In such an environment, it is difficult for the buck to see any weakening and thus we are stuck at familiar ranges as the past few months have been characterized by swings. Any pessimism on the U.S. side could fade greenback prospects, but there is evidence that sustained growth is a big part of the American economy that other places are missing.
What to Watch Today…
- University of Michigan Consumer Sentiment 10 AM
Complete Economic Calendar can be found here.
EUR
The Euro is crumbling as indicators from Germany keep adding to concern that the slowdown could turn recessionary if things do not turn around in the Euro-bloc’s largest economy soon. German Industrial Production shocked even the most pessimistic as the forecast 0.1% uptick turned out to be a deep contraction f (-1.7%).
Another release of Italy’s Retail Sales also showed the numbers going into negative territory, worse than anticipated. We think proposals turning into action that forge a path towards recovery will help Euro forward, but we understand it is becoming difficult to defend the position.
MXN
The Mexican Peso and other commodity-based currencies appreciated over the buck with a resurgence in the prices of commodities with the exception of oil. Indeed, the announcement by Saudi Arabia officials that they would be willing to fill oil supply production gaps helped lower the price of barrels.
Nevertheless, in emerging markets, there is a revival of hope surrounding a deal between China and the United States, especially after Chinese officials have been stating to ignore the aesthetics while defending the progress in negotiations. We shall see if MXN, CAD, NZD, and AUD continue to be gainers with a positive stance.
