The September employment gain was not too far off relative to consensus. NFP should be broadly neutral for the USD at this time, in the opinion of economists at TD Securities.
USD/JPY above 145 risks yen-tervention
“We do not think today’s report will do much to sway the USD one way or the other. At a minimum, markets will likely have to wait until the upcoming CPI report to stake a bigger claim in direction.”
“We continue to see USD resilience into year-end. The currency we think that is most vulnerable to the USD wrecking ball is the CAD given its very awful household debt servicing outlook.”
“We are wary that a move above 145 in USD/JPY will compel FX intervention, which could be more likely given upcoming CPI (especially if stronger). That could introduce temporary USD drag. Nonetheless, the USD remains best in class, and we look to accumulate on dips.”