ForexLive New York wrap-up; Employment a mixed bag for markets

• Canadian employment unexpectedly falls 43.2k; rate rises to 8.6%
• US non farm payrolls fall 190,000; jobless rate rises to 10.2%; worse than expected; upward revisions to August, September data; Unemployment rate highest since ‘83
• France, Netherlands to consider dollar-denominated bond issues
• CEA Romer; White House exploring a range of options to deal with unemployment
• US wholesale inventories fall 0.9%
• IMF to G20: Err on the side of supporting demand
• Brazil, Japan, Sweden all call on China to allow greater Chinese FX flexibility ahead of G20
• ECB’s Gonzalez-Paramo: Don’t exit stimulus too soon or too late
• Italy’s Tremonti: Global stock markets too high
• US consumer credit continues sharp contraction; down $14.8 bln in September
• Gold reaches $1100; closes at $1095.50; oil falls 2% to $77.63
• S&P 500 rises 0.25%; up 3% for the week

There was a good day of intraday volatility in the wake of the US employment report with the market struggling to decide between the reflation-led argument that the Fed won’t be hiking anytime soon versus the idea that without a US rebound, the global rebound may be unsustainable. The later idea won out, narrowly, at the end of the day.

EUR/USD ends slightly easier, down at 1.4845. We traded as low as 1.4815 in early trade and as high as 1.4915.

USD/JPY slumped as low as 89.62 with solid selling of JPY crosses seen in morning trade. CAD/JPY longs were particularly heavily unwound today after very poor Canadian employment data. EUR/JPY slipped as low as 133.22 before closing at 133.45.

AUD/USD was underpinned by the move to fresh highs in gold and the hawkish comments from the RBA overnight. Stops above 0.9180 were triggered as spot rallied as high as 0.9197 before stalling.

Cable ended on a firm note, at 1.6610, after stalling again at 1.6635 resistance.

Have a great weekend all. We’ll be checking in over the weekend with some G20 observations, no doubt.