Long-awaited US NFP data for September came at 156K, below consensus of 170K and upward-revised number from August from 151K to 167K.
Lower-than-expected numbers disappointed markets, as higher prints were expected to confirm Fed’s intentions to hike interest rates by the end of the year.
Fed needs now to be more cautious, as weaker numbers from jobs sector would dent strong bullish outlook, boosted by recent upbeat US economic releases.
US Unemployment ticked higher to 5.0% in September, from 4.9% in August that was also consensus for today’s release.

Foreign Exchange

The dollar jumped against most of majors after jobs data, erasing part of recent strong gains, driven by strong US data that brightened the outlook for Fed’s interest rate raise.
EURUSD gained 0.62% after data release, or 0.73% from daily low at 1.1103, failing so far to clearly break below key levels at 1.1122/08, to confirm bearish resumption. Fresh bounce retests former pivots at 1.1170/80 zone and threatens to further weaken strong bearish outlook after Thursday’s fall that probed below key support levels. Return above 1.1200 barrier will revive near-term bulls and turn focus higher.
GBPUSD showed no significant reaction on US jobs data, remaining within 1.2300/1.2400 range, after overnight’s crash when Sterling fell 6% on news and thin Asian market. The pair still holds within congestion spanned between 1.2480 and 1.2225, where the price returned after overnight’s spike below 1.2000 handle. Outlook remains negative for British pound, as recent comments from top EU officials reinforce fears of hard Brexit scenario which could push the pound further down.
USDJPY eases from eight-day rally peak that approached key resistance at 104.30/43, pressed by weaker-than-expected US jobs data. Correction was signaled by overbought technical studies, with the pair being on track for the first daily close in red, after eight consecutive bullish days. Fresh easing took out initial support at 103.34 and returned below daily Ichimoku clod top at 103.22. Strong supports at 102.30/10 zone are expected to contain correction and keep near-term bulls in play for fresh attempts higher.

USDCHF pulled back from daily high at 0.9837, the highest traded since 01 Sep, threatening to offset bullish signal, generated on Thursday’s strong rally. The price returned below 200SMA at 0.9792, which acted as strong resistance, as several attempts higher during past few weeks failed to clearly break above this barrier. The pair is down 0.73% from day’s high, with fresh easing looking for 0.9760 (Fibo 38.2% of 0.9637/0.9837 rally) support, which guards thin daily cloud at 0.9730 zone.
USDCAD weakened after upbeat jobs data from Canada that showed 67.2K new jobs added in September, well above forecasted 10.0K and 26.2K in August. The pair eased also on weaker-than-expected US NFP data, as past few days rally stalled just ahead of strong technical barrier at 1.3300 (weekly Ichimoku cloud base). Pullback probes below 200SMA at 1.3208 and shows signals of stall at strong double-Fibonacci support at 1.3180, which is seen as ideal reversal point to keep near-term bulls intact. Conversely, daily close below here would soften near-term structure.

Commodities
Spot GOLD regained traction after repeated downside rejection at $1249, fresh four-month low. Weaker dollar boosted gold’s price, which could extend recovery on oversold daily studies, to initial barrier at $1270 and more significant $1285 resistance (Fibo 38.2% of $1343/$1249 fall).
Overall outlook remains negative, as recent sharp fall marks loss of 7% in past two weeks.
US CRUDE OIL price eased slightly after ascending for seven days in row and posting fresh 3 ½ month high at $50.73. However, oil price for now holds above psychological %50 level, which was taken out on Thursday and remains boosted by recent OPEC agreements about production cut.
Stocks
European stocks were lower on Friday, with FTSE 100 being down 0.6% from daily highs, after opening higher on pound’s fall.
German Dax slipped by 1.04% after Friday’s opening lower and maintain negative near-term tone.
French CAC-40 index slipped 0.96% after lower open on Friday and continues to move lower.
Wall Street was lower after opening and erased all gains on weaker dollar.
Dow Jones fell 0.74% from session post US data high at 18250.
S&P500 slipped 0.69% from 2161 peak.
NASDAQ100 is down 0.66% after fully erasing post US jobs data gains., Market Analysis