The US dollar was trading lower against most of the major peers during the US session on Friday and the dollar index was down 0.1%, hovering near 96.25.
Earlier in the session, the US Department of Labor announced that the US economy created 250,000 new jobs in October, way above the expected 190,000 and more than double the 118,000 in September. The unemployment rate remained unchanged and stayed at 3.7%.
Further strengthening this report was average hourly earnings (wage growth) which jumped to 3.1% annually, up from 2.8% previously and wages are now rising the fastest since April 2009. This is a strong inflation signal and confirms the current Fed hiking trajectory.
The US dollar initially rose after this numbers, although only marginally, but failed to hold gains and declined shortly after.
On the other hand, US yields soared, with the 30-year yield again trading at cycle highs near 3.42%, while the 10-year yield climbed toward the 3.2% handle. Short-term yields also flew higher.
Rising yields spooked stocks today and the SP500 index fell as investors took profits from the recent rally and the index tested the crucial 200-day moving average, which has held and therefore the medium-term outlook for stocks appears bearish.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.