<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-november-non-farm-payrolls-263k-vs-200k-expected-20221202/“>US November non-farm payrolls +263K vs +200K expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-november-employment-change-101k-vs-50k-estimate-20221202/“>Canada November employment change 10.1K vs 5.0K estimate</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/poland-formally-agrees-to-60-russian-oil-price-cap-with-review-mechanism-20221202/“>Poland formally agrees to $60 Russian oil price cap with review mechanism</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/freeport-lng-now-says-it-will-restart-initial-production-around-year-end-20221202/“>Freeport LNG now says it will restart initial production around year-end</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-evans-we-are-on-a-path-to-get-financial-conditions-appropriately-restrictive-20221202/“>Fed’s Evans: We are on a path to get financial conditions appropriately restrictive</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/timiraos-strong-jobs-report-keeps-the-fed-on-track-to-hike-by-50-bps-20221202/“>Timiraos: Strong jobs report keeps the Fed on track to hike by 50 bps</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-barkin-labor-supply-looks-like-it-will-remain-constrained-20221202/“>Fed’s Barkin: Labor supply looks like it will remain constrained</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-de-guindos-we-are-seeing-that-inflation-is-starting-to-slow-down-20221202/“>ECB’s de Guindos: We are seeing that inflation is starting to slow down</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-de-guindos-november-inflation-data-has-been-good-news-20221202/“>ECB’s de Guindos: November inflation data has been good news</a></li></ul><p>Markets:</p><ul><li>Gold down $5 to $1797</li><li>WTI crude oil down 99-cents to $80.22</li><li>US 10-year yields down 2.4 bps to 3.50%</li><li>S&P 500 down 10 points to 4072</li><li>JPY leads, CAD lags</li></ul><p>The US dollar was soft all week in the lead-up to non-farm payrolls and that was particularly true of USD/JPY in the hours before the release as the pair touched 133.64 early in Europe. With a strong bid in bonds, the market is seeing a Fed peak or creeping economic weakness.</p><p>So naturally non-farm payrolls were strong and the latest batch of dollar bears was stung by a quick roughly 150 pips US dollar rally across the board. The main headlines on jobs and wages were strong with hourly avg hours up 0.6% compared to 0.3% expected.</p><p>Then it all came slowly undone. People began to pick holes in the wages story with hours worked ticking lower. Then they looked closer a the household survey and noted another decline and a flat trend since March:</p><p>The result was a slow give-back of all the US dollar gains. That left the euro and pound largely unchanged on the day with USD/JPY down a full cent.</p><p>Helping the move was a relentless long-end led bid in bonds for the second day. US 30s fell 9 bps to 3.54% from a high of 3.70% shortly after the jobs report. </p><p>The Canadian dollar also had a jobs report to deal with and it was upbeat with a 50K increase in full time jobs. That makes next week’s BOC meeting a bit more intriguing with the market 76% priced for 25 bps but with the remainder on 50 bps. The loonie underperformed but that was on a reversal in oil prices with the OPEC+ meeting on Sunday looming and the G7 oil price cap set to go into effect on Monday. </p>

This article was written by Adam Button at forexlive.com.