Dollar Recovers Modestly After Jobs Print Beats Expectations


Dollar Recovers Modestly After Jobs Print Beats Expectations

NOVEMBER 01, 2019

Dollar bulls will be happy to see October in the rearview mirror.


The dollar fell to a three-month low overnight and October was the worst month for the greenback in two years.

November will start off with a bang.  The U.S. economy added 128K jobs in the month of October, besting dreary expectations of only 85K.  Last month’s print was also upwardly revised to 180K from 136K.  These are undoubtedly strong numbers, which has allowed the greenback to claw back minor gains against most of its rivals.

Later, Markit and ISM manufacturing prints will cross the wire.  The manufacturing sector is in a recession so these numbers will draw extra attention especially after yesterday’s dreadful Chicago PMI reading.  There is also a slew of Fed speakers on today’s docket, just two days after the central bank cut rates for a third time.  It will be a busy day, so apologies for those hoping to start the weekend early.

What to Watch Today…

  • ISM and Markit Manufacturing; Multiple Fed Speakers

Complete Economic Calendar can be found here.


While EUR/USD remains near historically low levels, the Euro gained over 1.5% versus the greenback in the month of October.  While most of the data released in the Eurozone over the past few months have been painful, yesterday’s prints were mostly positive.  Real GDP modestly beat expectations and boosted the common currency.  But most of the move in EUR/USD can be attributed to broad dollar weakness and the Fed’s rate cut.

Technical analysts also point out that the pair is heading higher and might breach the 200-day moving average, which would likely allow the Euro to extend gains further.


The Australian and New Zealand dollars led the overnight gains versus the U.S. dollar on a rare, positive Chinese manufacturing print. China’s Caixin manufacturing purchasing manager index beat expectations, rising to 51.7 in October from 51.4.  Global manufacturing in general, and especially in China, has been hurt by the tit-for-tat trade war between the United States and China over the past year.

The overnight gains have mostly been wiped out in early trading following a strong American jobs report.