EUR/USD

Spot declined as low as 0.75% on the day due to the strength of the USD after a huge upside surprise in Non-Farm Payrolls data, a jump of 517,000 jobs in January versus a +188,000 expectation. Several hawkish post-ECB comments by Governing Council member Vasle, Muller, and Rehn did little to support the EUR as spot continues to retrace from the highs seen early yesterday morning.  

USD/CAD

Spot moved higher by as much at 0.80% after the US data release. The CAD is poised for its first weekly decline since mid-December. Upcoming economic data highlights include the Ivey Purchasing Managers Index on Monday and employment numbers on Friday of next week.

GBP/USD

Spot declined as low as 1.2% following the strong US economic data. Chief Economist at the Bank of England, Huw Pill, said that they will decide whether to speed up or slow down their Quantitative Tightening (QT)  policy this summer. Given yesterday’s BoE decision and statement regarding a foreseeable pausing of rate hikes, one would err on the “slowing down” side of QT tightening.  

USD/BRL

In a volatile session, spot moved as high as 1.65% from yesterday’s close following the strong US economic data as well as comments by President Lula da Silva once again questioning both the monetary policy of the central bank as well as its independence. This level of interventionism by a President is not sitting well with investors, even as interest rates sit at 13.75%.

USD/MXN

Spot rose as high as 1.55% after the strong Non-Farm Payroll numbers in the US. Nonetheless, USD/MXN has approached low levels not seen since October of 2018 as its domestic interest rates reach 10.5%, making it one of the strongest performers in FX. CPI is released next Thursday morning and the Banxico rate decision follows that afternoon, with expectations of a 25bps hike to 10.75%