Yesterday’s market action was driven by consecutive upside surprises in US Non-Farm Payrolls (147K vs 110K exp) and ISM Services PMI data (50.8 vs 50.5 exp), fueling another wave of positive sentiment and pushing US equities into yet another frenzied rally.

The reaction to the data was progressive but consistent, taking Safe-Havens like Gold and US Treasuries down, also dragging down the safer JPY and CHF .

In contrast, the risk-on session pushed upward risk assets, like Consumption Commodities – known in Finance as Softs, with Orange Juice and Sugar rallying above 6% and Cryptos additionally enjoying from the news.

The reaction in energy commodities was, however, mixed, with the assets rising initially before giving back their gains and closing down small.

Daily Cross-Asset Performance

The market’s initial reaction to the number was somewhat tricky, as flows quickly changed between the 8:30 release and the US Equity open at 9:30 A.M.

Watch the reaction for cryptocurrencies for example, with ETH once again subject to high volatility in the session.

A Picture of Performance for Major Currencies

The Pound was somehow the strongest of majors, with Gilts majorly recovering from yesterday’s volatility, seeing GBP/USD up small against the Dollar.

On the other hand, the US Dollar led all majors (with the CAD unchanged) and particularly against its lower-yielding safe-haven currencies in the CHF (-0.50% vs USD) and the Yen (-0.88%).

Monday’s reactions in the Dollar Index will be key to monitor (a formal invitation to consult our most recent DXY Analysis).

Today’s session should be more than calm, with US Traders off, volumes and movement tend to be relatively subdued.

However, traders should still prepare for an active Monday as some of the flows may trickle to next week as Thursday’s session got cut short with the Early US Close.

The only economic calendar events today is the German Factory orders and European PPI Data, which might move the EUR/USD a bit.

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