US dollar higher after the rise in jobs
US non-farm payrolls rose 250K compared to the 200K jobs that were expected to be created. Along with that, more workers were pulled into the jobs market, especially among prime age workers.
It was a roundly strong report although month-over-month wage gains fell just shy of the consensus estimate.
Overall, it will keep the Fed upbeat about the outlook for jobs and assures a rate hike in December. The implied odds rose to 80% from 74%.
The US dollar responded with a solid but not spectacular gain across the board. USD/JPY climbed to 113.00 from 112.85.
EUR/USD tracked down to 1.1415 from 1.1435.
The largest gains were against commodity currencies as AUD/USD fell to 0.7206 from 0.7235 ahead of the release. That came in part due to a rejection of an earlier story about a US-China trade deal.
The biggest mover was USD/CAD, which rose nearly a half-cent to 1.3106 but the bulk of that was because of soft Canadian trade data and a mixed jobs number.
As for what's next, I don't see anything in the numbers to derail the positive sentiment in markets but the US dollar could continue to grind higher on Fed expectations. We'll be watching the 10-year yield; it inched up after the data but remains below 3.18%; above could spill over elsewhere.
