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By XE Market Analysis January 10, 2014 2:38 pm
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    XE Market Analysis: Asia - Jan 10, 2014

    The dollar fell sharply and stayed down after the big jobs report miss, where the NFP print came in at just 74k, versus street consensus of around 200k. EUR-USD inched into lows of 1.3568 into the data, before rocketing to 1.3665 highs immediately afterward. The pairing later peaked at 1.3687. USD-JPY meanwhile, topped out at 105.34, before trading under 103.90 later in the session. Elsewhere, the CAD was a loser, as the combination of soft U.S. jobs, and poor Canadian employment data combined to take USD-CAD to new multi-year highs over 1.0945. The CHF firmed on safe haven flows. Treasury yields fell after the data, as stocks turned lower, indicating risk-off conditions.

    [EUR, USD]
    EUR-USD rallied sharply following the weak U.S. employment report where the NFP print was less than half of expectations. EUR-USD moved to 1.3660 from near 1.3585 in itially, before easing back to 1.3620 on profit taking. From there though, risk aversion, and softer U.S. yields supported the euro, and it eventually posted intra day highs of 1.3687 by late morning.

    [USD, JPY]
    USD-JPY rose to session highs of 105.34 just ahead of the jobs report, though was quickly smashed down to 104. 20 after the weak data. The pairing later posted intra day lows of 103.83, after running into sellers into 104.70. Wall Street turned lower, and Treasury yields faded further, keeping dollar-yen under pressure. Bids are noted into the 104.00 level, though stops were tripped under the January 6 low of 103.92. Follow through was limited however, with talk of Japanese bids stepping in.

    [GBP, USD]
    Sterling dove in Lond following disappointing U.K. data, with production unexpectedly stagnating in November, construction output falling by its biggest margin in 17 months (of 4%), and the BRC retail sales figure for December falling short of expectations. Cable fell to near 1.6260 ahead of the U.S. data, though spiked back over 1.6517 in the aftermath of the weak jobs report. The pairing settled under the figure however, with weekend profit taking stepping on.

    [USD, CHF]
    EUR-CHF eased initially after the U.S. jobs report, though bounced from 1.2325 over 1.2340 as the euro outperformed . USD-CHF posted 0.9005 lows, down from 09090 through. We look for the cross to remain at levels above the SNB's worry zone for now, unless the euro turns significantly weaker as a result of central bank action.

    [USD, CAD]
    USD-CAD ramped up to 1.0919 trend highs immediately after after the soft employment numbers from both sides of the border. Barrier options at 1.0900 were dispatched quickly, and sources quickly reported fresh standing bids coming in at 1.0900. The pairing eventually made its way to 1.0946 highs, and never gave the 1.0900 level another look.

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