US NFP showed the negative result for the first time in seven years, with record drop in employment registered in hospitality and leisure sector, as expected.
Fall in payrolls which strongly undershoot already low forecast at 90K and previous month’s upward-revised 169K build, is expected to be short-lived, as negative numbers were caused by the weather and most of displaced people would probably return to work.
Unemployment rate fell to 4.2% in September, the lowest since Feb 2001 and the figure was not impacted by hurricanes which hit states of Florida and Texas last month.
Wages growth, which was focused today, surprised at the upside with Average Hourly Earnings showing 0.5% rise in September vs forecast for increase by 0.3% and upwards-revised figure in August to 0.2% from 0.1%.
Increase in wages had the strongest impact on the greenback and offset negative tone from NFP’s miss.
The US dollar hit fresh highs against the basket of major currencies shortly after US jobs data release.
USDJPY pair broke above pivotal barrier at 113.25 and hit the highest since July 14 at 113.41.
EURUSD slid to new seven-week low at 1.1669, while the British pound fell to one-month low at 1.3035 and eyes psychological 1.3000 support as political uncertainty in the UK additionally pressures pound.
Spot Gold extended broader weakness and met target at $1263, after US jobs data inflated the greenback and Crude Oil fell on dollar’s fresh post US jobs report acceleration higher.
WTI oil price fell to the lowest in three weeks at $49.55, while Brent oil fell over $1 after US jobs data.