The dollar shot higher following the jobs report, which saw NFP rise 200k versus consensus expectations for a 184k rise. EURUSD skidded to 1.2437 from 1.2490, as USDJPY rallied to 110.37 from 109.85. Gold fell in the aftermath of the jobs report, where strong hourly earnings data saw yields and the dollar shot higher. The contract fell from $1,349.00 to $1,333.70.
Hourly earnings were in-line, at up 0.3%, while the unemployment rate was steady at 4.1%. U.S. nonfarm payrolls increased 200k in January, right on the button, after December’s 160k gain (revised from 148k). However, November’s 252 jump was revised down to 216k. The unemployment rate was steady at 4.1%. Household employment surged 409k versus 104k previously, with the labor force up 518k from 64k. Earnings were up 0.3% last month following the 0.4% December gain (revised from 0.3%). The workweek fell to 34.3 from 34.5. The labor force participation rate was unchanged at 62.7%. Private payrolls increased 196k, with the goods producing sector adding 57k. Construction jobs were up 36k. Manufacturing employment rose 15k. Service sector jobs rose 139k. Government employment was up 4k. This is an overall solid report, with broad-based gains, though the stronger earnings numbers will be a focal point and are likely to keep Treasury yields headed higher.
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