The European currency briefly rose above $1.09 after the announcement of the American employment report before losing ground again. The euro lost 0.38% to $1.0850, its mid-session level after a peak at $1.0906. Forex traders took note of the creation of 12,000 jobs in October in the United States while 106,000 job creations were expected after 223,000 in September, a revised figure of 254,000.
The August figure was also reduced from 159,000 to 78,000.
The unemployment rate remained stable at 4.1%, as expected. Salaries increased 4% annually, in line with consensus.
On the interest rate market, the yield on the American 10-year bond followed the opposite path to the euro. It initially fell sharply after employment, but is now gaining nearly 3 basis points to 4.317%. The 2-year rate, which is commonly considered an indicator of monetary policy expectations, on the other hand lost 3.5 basis points to 4.15% after a peak at 4.259%.
The probability of a Fed rate cut of 25 basis points on November 7 is approaching 100% and that of a further easing of the same magnitude in December reaches 82.8%, according to the CME FedWatch Tool.
source: AOF
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Canada
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