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US Non Farm Payrolls Stronger than Expected in October; Dollar Recovers but Will it Last?

 The private sector created 159,000 jobs in October, stronger than expected.  In August, instead of creating 93,000 jobs, the private sector added 143,000. In September, instead of creating 64,000 jobs, the private sector added 107,000. Since October 2009, the economy created more than 1.1 million private sector jobs. Average hourly wages are up by 1.7 percent from a year ago, while average weekly wages are up 3.5 percent. The unemployment rate remained unchanged at 9.6 percent. Meanwhile, average hourly earnings increased 0.2 percent, slightly higher than the mean consensus forecast of 0.1 percent.

U.S. Nonfarm Payrolls

source: Bloomberg-Prepared by Michael Wright

EUR/USD Daily Chart

source: Bloomberg-Prepared by Michael Wright

EUR/USD for the time being seems somewhat directionless. The move down following NFP to erase all of the gains it made post FOMC rate decision earlier this week has many scratching their heads as to whether the 1.4283 high we recently witnessed may in fact be a short term top back to 1.3300. For the time being, I would advise to remain flat until we can get a better gauge as to where it may want to trade next week.

By Sam Khorsand, Technical Strategist/Trader