October Nonfarm Payrolls reported Friday were 150k, lower than the 180k estimate and the lowest tally since June. September’s payrolls were revised down from 336k to 297k. Signs of a softening labor market suggest the Fed’s rate increases continue to filter through the U.S. economy and support its pause on any further hikes, allowing more time for the full effects of the tightening to be felt.
The U.S. Dollar Index closed -1.04% Friday, its second biggest daily drop this year (-1.19% on July 12th), rare volatility for the dollar. Treasury yields declined in tandem with the dollar, leading the benchmark 10-year yield to a 4.48% intraday low, a sharp drop from the October 19 close at 4.991%, and its lowest since September 21st.
The dollar is mixed in trading today vs. the G10 in narrow overnight ranges. Treasury yields are higher in all tenors, with the biggest gain 0.063% in the 3-year.
U.S. equity indexes are trading higher at the open on continued momentum from Friday’s gains.
Oil prices are +1.34% today (and +1.97% YTD, a small net gain for such a volatile commodity). Gold is -0.35% at 1,985.82.
This week’s U.S. economic calendar features tomorrow’s Trade Balance, Wednesday’s Mortgage Applications, Thursday’s Initial Jobless Claims, and Friday’s Consumer Sentiment.