Dollar surges after US payrolls blast past expectations
Updates throughout with US jobs data at 1250 GMT
By Amanda Cooper
LONDON, Oct 4 (Reuters) -The dollar soared on Friday after data showed the U.S. economy added far more jobs than expected in September, quashing expectations for another jumbo rate cut from the Federal Reserve and soothing some concern about the outlook for growth.
The U.S. Bureau of Labor Statistics said 254,000 workers were added to nonfarm payrolls last month, well above the 140,000 economists had expected, while August's number was upwardly revised to 159,000, from an original 142,000.
The dollar was set for its biggest one-day gain against a basket of major currencies in four months, rising 0.6% on the day, as government bond yields rose and traders ditched their bets that the Fed will cut rates by half a point next month.
"Overall, though, despite the much stronger than expected figures, this report is unlikely to materially alter the FOMC's policy outlook," Pepperstone market strategist Michael Brown said.
"For sentiment, the forceful 'Fed put' should see the path of least resistance continuing to lead higher for equities over the medium-run, though conviction in the short-term could well be somewhat lacking, owing to ongoing geopolitical risks in the Middle East," he said.
Investor sentiment has been jittery this week, as flaring tensions in the Middle East raise the risk of serious disruptions to global crude supply, setting crude oil prices on course for their biggest weekly gain in two years.
U.S. President Joe Biden said on Thursday that the U.S. was discussing strikes on Iran's oil facilities, when asked whether he would support Israel's strikes in retaliation for Tehran's missile attack on Israel.
Biden's comments sparked a surge in oil prices, which had already been on the rise this week.
Brent crude futures LCOc1 rose as much as 1.8% earlier on Friday, retreating after the payrolls report in the face of the stronger dollar to $78.09 a barrel, up 0.6% on the day. U.S. futures CLc1 were up 0.6% at $74.20.
U.S. stock futures ESc1, NQc1 rallied sharply, up between 0.7% and 1%. The data has lowered the chances of a big equities-friendly rate cut next month, but it also served to reassure investors over the resilience of the world's largest economy.
"Today’s data hit a grand slam with payrolls coming in strong, positive revisions, and unemployment falling. The economy is heading into the post-season solidly. This is a beat on every aspect and the Fed must be smiling as they got their bats out!" Lindsay Rosner, head of multi-sector investing, Goldman Sachs Asset Management, said.
A slew of data releases this week had already pointed to a U.S. economy still in solid shape.
With the prospect of a big November cut from the Fed now off the table, gold prices tumbled. Spot gold XAU=, which has vaulted to record highs around $2,700 an ounce, dropped 0.4% to $2,645.
The Japanese yen JPY=EBS bore the brunt of the dollar buying, weakening after the jobs numbers to leave the U.S. currency up 0.9% at 148.365.
The yen had already been under pressure from more dovishness from Tokyo officials this week. New Prime Minister Shigeru Ishiba said this week that economic conditions in the country were not ripe for more rate hikes by the Bank of Japan (BOJ), reversing the hawkish tone he struck prior to his election victory.
The euro EUR=EBS, meanwhile fell 0.6% to $1.0966, having hit two-month lows, while the pound GBP=D3 fell 0.3% to $1.3092, surrendering earlier gains made after Bank of England chief economist Huw Pill said high interest rates were not a key reason for weakness in British business investment.
Oil price wary amid prospects of war escalation https://reut.rs/3zM4k0O
Additional reporting by Rae Wee in Singapore and Davide Barbuscia in New York; Editing by Jacqueline Wong, Andrew Heavens, Chizu Nomiyama and Hugh Lawson
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
