US December job openings in the JOLTS report climbed to 9.026 million compared to 8.750 million expected. The counter-trend turn may give FOMC officials pause at the two-day meeting that just got underway.
The market is expecting something of a dovish shift from Fed officials but given the strong data in January, there is case to be made that they can stay hawkish longer without risking an unnecessary slowdown.
The data led to an immediate bid in the US dollar, with USD/JPY erasing all its losses on the day in a 70-pip rally.
USDJPY 10 mins
Normally, I wouldn’t expect such a big reaction to a modest JOLTS beat in non-farm payrolls week but it comes right before the FOMC meeting and that has the market extra-sensitive.
Beyond USD/JPY, the moves have been in the 20-30 pip range. Meanwhile, gold had its $16 gain completely erased.