US dollar rocked by shocking payrolls figure

Pound (GBP) rebounds from budget-induced selloff

The pound (GBP) recovered from its post-budget slump on Friday as the anxiety in UK markets eased.

In addition, a pullback in Bank of England (BoE) interest rate cut bets – due to potentially inflationary measures in the Autumn Budget – lent Sterling support.

Sterling could see a quiet start to this week’s session amid a lack of UK data ahead of the looming BoE interest rate decision.

Euro (EUR) retreats as investors pocket profits

The euro (EUR) retreated from multi-week highs on Friday as a lack of Eurozone data left the single currency without much support.

Profit-taking may have also been a factor in EUR’s downside, as investors sought to cash in on the currency’s impressive weekly gains.

This morning, the Eurozone’s final manufacturing PMI could put modest pressure on the euro, if it confirms another contraction in factory activity last month.

US dollar (USD) hit by staggeringly weak payrolls print

The US dollar (USD) had a volatile end to a volatile week on Friday, after a shockingly weak US non-farm payrolls report.

The US economy added just 12,000 jobs in October, a fraction of September’s 223,000 and well below forecasts for 113,000. While the recent hurricanes and strikes at Boeing were a key factor, the weak payrolls print still dented USD.

Today could be the calm before the storm for the US dollar. With the US presidential election tomorrow and the Federal Reserve policy decision on Thursday evening, this week could bring more volatility for the US dollar.

Canadian dollar (CAD) mixed amid USD volatility

The Canadian dollar (CAD) was uncertain at the end of last week’s session. While strong weekly gains for oil supported the crude-linked ‘loonie’, the volatility in the US dollar undermined CAD.

Looing forward, Canadian data is in short supply today. Therefore oil price movements could drive the Canadian dollar.

Australian dollar (AUD) firms as risk appetite improves

The Australian dollar (AUD) opened this week’s session on the front foot amid an improvement in market risk appetite and stronger-than forecast inflation data.

New Zealand dollar (NZD) buoyed by cheery trade

The New Zealand dollar (NZD) also gained ground overnight, with an upbeat mood lifting the risk-sensitive ‘kiwi’.