Forex news for US trading on August 7, 2015:

  • July 2015 US Non-farm payrolls 215k vs 225k exp
  • US average hourly earnings 2.1% vs 2.3% exp y/y
  • Primary dealer poll see diminishing chances of two hikes in 2015
  • Unemployment rate 5.3% vs 5.3% exp
  • Canada employment change July +6.6k vs +5k exp
  • Canada full time employment change -17.3k vs +64.8k prev
  • Canada part time change +23.9k vs -71.2k prev
  • July 2015 Canada Ivey PMI 52.9 vs 52.0 exp
  • Canada's Harper says 80% of economy is healthy and growing
  • Goldman Sachs' Hatzius keeps Dec as his preferred Fed date
  • Bundesbank's Ulbrich says inflation is coming in lower than ECB forecasts
  • SNB's Zurbruegg says they're ready to intervene if they deem it necessary
  • Zurbruegg says they currently don't see a reason to change negative rates
  • Baker Hughes total rig count 884 vs 874 prior
  • US June consumer credit $20.74B vs $17.0B expected
  • CFTC Commitments of Traders report: US dollar net longs hit highest since early June
  • S&P 500 closes down 6 points to 2078
  • Gold up $4 to $1093
  • WTI crude down 86-cents to $43.80
  • NZD and AUD lead, USD lags

A second look at non-farm payrolls raised fresh questions. The knee-jerk reaction to the report was much higher in the US dollar. In particular, the euro felt the brunt as EUR/USD dropped to 1.0856 from 1.0950 before the data.

It wasn't a quick reversal so that says it was more about positioning than the details of the report. Granted, the avg hourly earnings numbers were a concern but I suspect the lack of follow through in a crowded US dollar trade sparked a wave of profit taking.

USD/JPY initially rallied 30 pips on the report to 1.2500 then stumbled to 124.25 in a slowish slide. Support held at 124.10 in slow afternoon trading and there was barely a bounce despite a rebound in US stocks.

Cable was more subdued as it struggled with a less-hawkish BOE but it still made progress in a rebound to 1.5490 from as low as 1.5430.

The Australian and kiwi dollars were steady gainers despite sluggish commodity prices. Worries about New Zealand milk prices were brushed aside in a climb as high as 0.6637 from as low as 0.6529. AUD/USD also dipped in Asia-Pacific trading only to finish nearly a cent higher.

The loonie was in a nasty chop as it struggled with a mildly soft employment report and the whims of the US dollar. Two tests of 1.3050 found buyers but none of them were resounding, even with oil under pressure. Last at 1.3113, up a handful on the day.