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Non-Farm Payrolls Fall, USD Lags

Posted Friday, September 6, 2019 by
Shain Vernier • 1 min read

This morning’s session has been an active one on Wall Street, with U.S. Non-Farm Payrolls (August) dominating headlines. The report was far from flattering and has brought fresh questions regarding the U.S. equities markets. For the time being, stock players are happy on the sidelines. The U.S. indices are largely flat an hour into the session, with the DJIA DOW (+60) setting the early pace.

U.S. Non-Farm Payrolls Lag Expectations

The U.S. pre-market hours brought a collection of primary market-moving releases. Among them was Non-Farm Payrolls and the jobs report for August. Below is a quick look at the highlights:

Event                                                                       Actual     Projected     Previous

Average Hourly Earnings (MoM, August)            0.4%            0.3%             0.3%

Non-Farm Payrolls (August)                                  130K             158K             159K

Unemployment Rate (August)                              3.7%              3.7%              3.7%

In the aggregate, today’s jobs numbers are so-so. The headliner here is the drop in Non-Farm Payrolls of about 19K month-over-month. 

USD Stumbles To Open U.S. Session

Thursday’s overnight didn’t treat the USD too poorly, but the early U.S. session has been a different story. Lagging Non-Farm Payrolls has hurt sentiment and sent rates south across the majors.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

Here are a few levels to watch for the USD/CHF:

  • Support(1): Daily SMA, .9839
  • Support(2): Bollinger MP, .9799

Bottom Line: The USD/CHF is well off session highs and appears to be on the verge of a complete reversal. If we see rates continue to fall, a trade from downside support may come into play.

For the remainder of the session, I will have buy orders in queue from .9846. With an initial stop at .9821, this trade produces 25 pips on a bounce from the Daily SMA.

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