A better than expected read on the US labor market. The JOLTs jobs report came out at 6.093 million against a drop under 6 million annualized that was expected. The previous month saw a minor revision to 6.09. All in all, the labor market looks healthy and stable. The IBD/TIPP Economic Optimism also came out above expectations at 53.6 points.
The US dollar holds onto its strength and makes marginal gains of a few pips. There is nothing here to stop the greenback
- EUR/USD was dipping early in the day and reached the lowest levels since July. It isn’t a dramatic move but rather a gradual slide.Support awaits at 1.15.
- GBP/USD was around 1.3140, still licking its wounds after the dovish BOE hike. However, it hasn’t broken out of range.
- USD/JPY was trading around 114.20, shy after a failed attempt to settle above resistance at 114.50.
- USD/CAD was moving higher to 1.2775 despite rising oil prices. WTI Crude reached $57.
- AUD/USD traded around 0.7655. The RBA decision did not move the needle.
JOLTs background
The US JOLTs job openings report was projected to show a small drop in the number of openingsÑ 5.98 million annualized in September against 6.08 million in August. The IBD/TIPP Economic Optimism report carried expectations for a small rise from 50.3 to 51.2 points in November.
The US dollar was a bit stronger across the board, yet trading was characterized by relatively narrow ranges.
The JOLTs number is eyed by the Fed, which sees it as a broad overview of the labor market. The number of quits reflects confidence. People that voluntarily leave their positions are either opting for a better job or higher pay. In good times, the number of quits rises. In bad times, people tend to cling to their desks.
Later today, we will hear from outgoing Fed Chair Janet Yellen. In addition, Randal Quarles, a new Governor at the Fed, will also be speaking.
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