NFP Data: GBP/USD Crashes 0.9 pct Lower, Euro Dollar 1.11 pct Lower

The US Dollar exchange rate complex (USD) has surged higher yet higher following the release of better-than-expected US Non-Farm Payroll data.

The pound to dollar exchange rate (GBP/USD) crashed 0.91 pct lower on a day-on-day basis and is quoted just below the key support level of 1.60 as we enter the new week.

The euro to dollar exchange rate (EUR/USD) ended a massive 1.11 pct lower having reached 1.2527.

(If you are holding out for a better rate DON'T DELAY. Ensure your independent FX provider has the correct buy order for when your rate is hit and the correct stop-loss order incase the market moves further against you. Find out more here.)

The headline non-farm payroll came in at 248K, markets were only expecting 215K. The US Dollar has predictably rallied on the news.

Dennis de Jong, managing director at UFX.com, comments on better than expected US nonfarm payrolls figures:

“After a disappointing August, this month’s results have shown that investors were certainly right to be optimistic ahead of today’s announcement.

“September’s figures are more than encouraging and, with the labour market recovering and momentum building, expectations of an interest rate hike will grow.”

The moves in the Us dollar will only fan the flames of the USD bulls.

However, be aware that the currency is overbought at the current time and a correction lower cannot be discounted.

That said we have been calling a retracement of the rally for some time now and no meaningful pullback has yet occured.

The trend higher remains intact.

Outlook for US Dollar, Euro and Pound Sterling Next Week

The following exchange rate outlook presentation comes courtesy of Boris Schlossberg at BK Asset Management.

More Reactions to USD Gains

Commenting on the latest moves in the USD complex is Joe Manimbo at Western Union:

"The dollar exploded to new 2- and 4-year highs against the euro and a currency basket after an overall solid U.S. jobs report. Nonfarm payrolls jumped 248,000 in September, topping forecasts of 215,000. August got upgraded to 180,000 from 142,000. Unemployment sank to a nearly normal 5.9 percent, the lowest in 6 years.

"Though prettier on the outside, a closer look on the inside of the report showed flat wages and the lowest participation rate (62.7 percent) since 1978. Nevertheless, the market appears to have caught rate hike fever which has powered the dollar stronger across the board and in line for a record 12th straight week of gains versus a currency basket."