Home / Market Update / Forex Market / USD Remains Resilient Despite Disappointing NFP

USD Remains Resilient Despite Disappointing NFP

US Nonfarm Payrolls rose at a much slower pace than expected in November. However, an underwhelming print did little to undermine the USD.

It will be very difficult to sell the USD as a thematic strategy given the global monetary policy setup. Fed’s hawkishness to be a significant offset to a USD retreat

Payrolls were +210K, well below expectations, and revisions added a relatively modest 82K. Hourly earnings were also not as strong as expected: +0.3% MoM and 4.8% YoY. In contrast, the household survey data were extremely strong, with unemployment down 0.4pt to 4.2%, even with a 0.2pt rise in the participation rate.

With a hawkish Fed profile in place (faster taper and likely hawkish SEP forecasts), USD dips should be shallow particularly versus funding currencies.

Check Also

Dow Jones Hits Record High but Stumbles as Consumer Confidence Wanes

The Dow Jones Industrial Average soared to a fresh all-time high of 45,277 on Friday, …