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The monthly US Non-Farm Payrolls report has a well-earned reputation for creating volatility in global financial markets, but even high-impact data is occasionally a dud.

Anyone following the US labor market this year (read: every trader) has been put through a wringer of emotions...

In a different environment, today’s Non-Farm Payrolls report would have led to fireworks, rather than the “wet blanket” market reaction that we’ve seen so far.

For seemingly the first time in months, today’s US jobs report had at least a little potential to influence the imminent Federal Reserve interest rate decision.

In a world where financial media sensationalizes every US jobs report as “The Most Important Jobs Report Ever,” even the most bombastic personalities had to admit today’s release was relatively insignificant, at least as far as Non-Farm Payroll reports go.

After President Trump spoiled “traders’ Christmas” last month with a now-infamous tweet implying that the May jobs report would be strong, market participants were happy to get back to their “normal” tradition of overanalyzing and excessively dissecting the volatile monthly jobs report at the moment of its release today.

As market jitters over Italy’s political turmoil partially subsided on Wednesday, both the euro and key global equity markets gained some respite from the previous day’s heavy pressures.

The primary market themes for the past week have been weaker-than-expected inflation pressures, a surge in the energy sector due in part to a planned US withdrawal from the Iran nuclear deal, and a partial reduction in geopolitical risk concerns due to North Korea’s apparent display of cooperation in releasing hostages ahead of US/NK June talks.

USD/CAD fell sharply for a second day in a row on Thursday as a combination of factors helped to weigh on the US dollar while boosting the Canadian dollar. This USD/CAD drop has occurred immediately ahead of key Canadian jobs data for April to be released on Friday.

Most aspects of the US jobs data released on Friday morning disappointed expectations, but were unlikely disappointing enough to sway the Federal Reserve from its firm track towards higher interest rates through 2018 and beyond.

Monthly employment data will take center stage on Friday morning as the US Department of Labor will report on the number of jobs added to the US economy in April, the unemployment rate, and key wage growth figures.

For more than a week, the US dollar has risen sharply as US government bond yields have surged – with the benchmark 10-year Treasury yield briefly topping 3% – while geopolitical risk perceptions have tentatively waned.