09:25 ET 10-Yr: -01+/32..4.487%.. GNMAs: +01/32.. USD/JPY: 115.0500.. EUR/USD: 1.3339
The Rally That Wasn't: The buck was given a strong boost over & through recent resistance zones on the majors following the data but that boost fizzled quickly. The brief rally was aggresively sold into sending the dollar well lower. The euro went from 1.3276 to 1.3237 to 1.3344 in the span of about 20 minutes. The dollar index, for all its 47 point range post-data is now sitting around where it closed yesterday at 82.72 (-0.04). Negative sentiment on the dollar was clearly unaffected by the jobs report.
In other dollar watching news Brad Setser points out ICBC's interest to repatriate $16 bn generated by its IPO. Guess the PBoC will just step up and buy them but I wonder if their will be some political chatter about the request.
Update 3:50 PM:
From the FT:
“The market was looking for the next trigger to sell the dollar, rather than buy it,” said Tania Kotsos, strategist at RBC Capital Markets.
The jobs created report looks good on the surface, but underneath there is a jump of 120k government jobs. This seems odd since earlier months show gov. relatively stable. Take this out and the private sector job creation is anemic!
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