Mixed NFP Report Boosts Stocks, EUR/USD and Bitcoin By Investing.com



Investing.com – The NFP report on the stocks showed good and bad on Friday, with job creations significantly above expectations, at 261k against 200k expected, but the unemployment rate at 3.7%, against 3.5% previously and 3.6% anticipated.

As for them, they rose by 0.4% in monthly data, against 0.3% expected and previously, figures likely to fuel inflation fears.

In the markets, there was a brief initial reaction of risk aversion and a rise in the Dollar, before the situation completely reversed.

On the , which was moving towards 0.9790 prior to the NFP report, we saw a dip at 0.9756, before the pair rallied to mark a peak at 0.9880.

As for the , the crypto fell from $20,550 to $20,450 in the first reaction, and then marked a high at $20,890.

The NFP report also had a brief bearish impact on the US futures indices, before these also turned upwards, currently rising by 1.63%.

This two-pronged reaction could be explained by the fact that investors reacted quickly to the higher-than-expected job creations, before taking into account the sharp 0.2% increase in the month-on-month unemployment rate. .

Indeed, while higher-than-expected job creations could comfort the Fed in aggressively raising rates, this is not the case for the unemployment rate.

In fact, today’s release reversed the trend in the outlook for the Fed’s next meeting in December. Before the NFP report, the probability of a 0.5% rate hike for the December Fed meeting was 47.2%, while the probability of another 0.75% rate hike was 52.8%.

Now, the market is pricing in a 52% chance of a 0.5% rate hike, while the odds of a 0.75 rate hike have fallen to 48%, according to the .

In the end, the NFP report published on Friday therefore reduced market expectations in terms of a Fed rate hike, which justifies the wave of optimism that we are seeing this Friday afternoon.

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