The US dollar has taken back a good portion of its non-farm payrolls drop as it levels out and broader markets consolidate.
EURUSD 10 mins
The dollar has been reluctant to push the ranges on the day and it’s similar in bonds. Yields initially fell on the data but then retraced with US 10s now down 2.1 bps to 4.07%, which is about where it traded before the data. However front-end yields are 4.-5 bps below pre-data levels and those are stronger FX drivers.
I’m always leery of an NFP move that’s been front-run and that was the case over the past 24 hours.
However the stock market can’t seem to help itself here as FOMO increasingly kicks in. The S&P 500 is up 29 points to a record 5186.