The October non-farm payrolls figures came out higher than expected at 166,000 versus 96,000 in September. The unemployment rate remained unchanged at 4.7%, and hourly wages jumped 0.3%. The revised September figures came out lower but the employment rate kept steady. The US dollar rallied briefly after the news release, but traders and automated systems bought Euros and British Pounds on dips forcing the Euro and Cable to make new highs and the dollar closing the day lower. On the flip side, the UK and Eurozone's economic outlook show slightly less optimism and US dollar flows are predicted to increase out of Euros and British Pounds. Look for Eurozone fundamental news this week to take a directional position. In early trading this morning, the EURUSD hit a high of 1.4525 and Cable a high of 2.0898.
The Canadian dollar continued rising with crude oil rising back to over $96 a barrel and positive economic news. Canada reported job growth of 63,000 and a lower unemployment rate of 5.8%. This is the lowest unemployment figure in 33 years.
With commodity currencies rising to higher and higher levels, there was no stopping the precious metals, Gold and Silver. Higher crude oil and a weaker dollar triggered further cash flow into the metals, pushing Gold to a high of $808/ounce and Silver to $14.6900. With the $800 level broken on Gold, $850 is the next target should demand and the weaker dollar continue.