The NFP report for Janaury did not disappoint, showing employment gain of 225k and wage growth of 3.1% y/y – both number above the official consensus. The mix looks especially favourable for the greenback but higher wage growth may force the Fed to consider a bit less expansive monetary policy. The only downside was unemployment rate that inched up to 3.6%. The initial market reaction is a bit unclear but the US500 is already 10 points above today’s lows. The Canadian report was strong showing employment gain of 34.5k.
USDCAD reverses from the resistance zone after strong Canadian NFP. Source: xStation5
