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FX Update: Stretched positioning is pent-up energy
The official US June jobs report on Friday failed to confirm the wildly strong June ADP payrolls growth numbers from the prior day. Not only was the Nonfarm Payrolls print a touch softer than expected at 209k vs. consensus near 230k, but the revisions of the prior two months’ data was -110k. On the positive side, average hourly earnings were a touch firmer than expected despite an 0.1 hour uptick in the average weekly hours (which increase the denominator). The market reaction was quite brutal for the US dollar as front-end US yields pushed lower still after a spike higher and reverse the prior day. Longer US ... (full story)