- Nonfarm payrolls rose below expectations in October.
- US dollar falls as Treasuries jump.
- The US dollar index falls to a one-month low below 105.30.
The weak US jobs report sparked a strong market reaction and sent the US dollar sharply lower. US dollar index down 0.80%, its worst performance in months, as Wall Street futures signal a positive open and extend a rally.
In October, the U.S. economy added fewer jobs than expected, with 150,000 jobs added compared to an expected 180,000. The unemployment rate unexpectedly rose to 3.9% from 3.8%.
US yields fell after the news. The two-year yield fell from nearly 5% to 4.85%, while the 10-year yield fell from 4.64% to 4.55%. Wall Street futures surged and commodity prices jumped, but later pared some of their gains.
The US dollar index (DXY) retreated from 105.90 to 105.25, hitting its lowest level since September 20. DXY remains near daily lows and is under pressure. Another support level is seen at 105.10, followed by 104.65.
On a weekly basis, the DXY is experiencing its biggest drop since July, breaking out of a four-week trading pattern and correcting further from a one-year high at 107.34 (October 3 high).