Non-farm payrolls in January smashed forecasts, with figures showing a massive 304,000 jobs were created last month. This was much better than the 165,000 the markets had been expecting and came despite the longest government shutdown in history. The unemployment rate nudged up to 4% from 3.9% in December.
Manufacturing PMI jumped to 56.6 last month from 54.3 the previous month and above the 54.2 the markets had expected. While exports continued to expand, they did so at the lowest level since the fourth quarter of 2016.
This afternoon, we will see November’s factory orders, while tomorrow we will see the services, composite and non-manufacturing PMI readings. On Wednesday, we will see the balance of trade figures for November, which are expected to show the deficit has narrowed fractionally.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.