USD Concedes Ground against main peers Following NFP Miss

  • Olivier Konzeoue, FX Sales Trader at Saxo Markets

  • 08.10.2021 03:00 pm
  • #payment

Commenting on the market reaction as US Nonfarm Payrolls miss expectations by a wide margin, Olivier Konzeoue, FX Sales Trader at Saxo Markets, said: “US Nonfarm Payrolls came out below expectations at 194k vs 500k, whilst the unemployment at rate 4.8% suggests a tight job market with rising wage growth and a participation rate still miles away from pre-pandemic levels. The fast-accelerating wage rises could represent a problem for growth as companies may address fast-eroding margins by raising their prices to maintain profitability and mechanically hurt consumption.

“Overall, markets seem to think tapering is still on the menu for the Fed’s November meeting, but any rates hike look a long way away as the observed slowdown of the job market implies “stagflationary winds”.

“US Yields are slightly lower with US 10y yields at 1.57% (2bps below its pre-print level) whilst USD conceded some ground against its main peers with EURUSD hovering around 1.1570 from 1.1550. At last US Equities Futures are mixed to positive Dow +0.13%, S&P +0.3%, Nasdaq +0.5% ahead of next week during which we’ll see Q3 earnings season take centre stage and possibly expose reduced margins, impacting corporate profitability.”

 

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