Daily FX Wrap Up

The United States landed a big punch today from the Non-farm payroll's report, giving Dollar bulls something to rally around. Non-farm payrolls increased by only 92k for the month of October but, September payrolls figure was revised upwards from 51k to 148k, making the 2 month average 120k, which is well within market expectations. The unemployment rate inched lower to 4.4 percent from 4.6 percent, the lowest level since May 2001. Average hourly earnings rose at a healthy 3.9 percent pace while average weekly hours increased from 33.8 to 33.9. Therefore even though we had a less than 100k payroll print, this suggests that the labor market remains tight, which should keep the Federal Reserve in their seats at least through the first quarter. With this positive out look for the Dollar many traders are asking, "Is the sell-off over?" This analysis thinks probably not for the long term, but in the short term, it could very well be a bit of a retraction. Next week there is a gambit of news from consumer credit report, crude inventory release, export and import prices and wholesale inventories.