US FX Handover: Dollar Dumps After NFP
Matt Weller, CFA, CMT May 3, 2019 3:42 PM
- US Non-Farm Payrolls (April) printed at 263k, well above estimates of 181k, and the unemployment rate dropped to 3.6%, its lowest level since 1969. However, average hourly earnings rose at only 0.2% m/m (3.2% y/y), a tick below consensus estimates (see our full recap of the release).
- The British pound was the strongest currency on the day and week, after a rough night in local elections could send both Labour and Conservatives back to the Brexit negotiating table with renewed vigor.
- The US dollar was the weakest currency after the slight miss in NFP wages.
- Implied volatility is elevated for both Aussie and Kiwi ahead of central bank meetings next week.
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