- ISDA triggers credit-default swaps on Greek debt
- US non-farm payrolls +227K vs +210K exp, prior revised up
- US unemployment rate at 8.3%, as expected
- Canada jobs -2.8K vs +15K exp, unemployment to 7.4% from 7.6%
- US Jan trade deficit largest since 2008
- US Jan wholesale inventories +0.4% vs +0.6% exp
- Trade and inventory data sparks downward revisions to Q1 GDP estimates
- IIF’s Dallara touts “voluntary” PSI deal
- CFTC: euro shorts resume climb
- S&P 500 gains 0.4% to 1371, gains 0.1% on the week
- USD and CAD lead, EUR lags badly
The euro took a nosedive in the first 90 minutes of US trading, falling to 1.3115 from 1.3215. Non-farm payrolls was the catalyst but the cannons were ready and waiting to be fired because of worries about Greece’s default and the European economy. A series of stops took EUR/USD to 1.3096 at the lows but the pair rebounded to 1.3120 and traded in a narrow afternoon range. The Greek CDS announcement caused only the slightest blip downwards.
Post NFP, it’s clear that positive US data will continue to boost the buck. USD/JPY jumped 50 pips on the report and after chomping through a mountain of sell orders at 82.40/50, it popped to 82.64 before settling at 82.47.
AUD was a black sheep today, dropping on NFP despite the ‘risk on’ mood. The initial drop to 1.0575from 1.0630 was followed by a near-full retracement. After Europe closed, however, it was all downhill, falling to session lows after the CDS decision at 1.0570.
