After weeks of developments with no real trend, and many insignificant sessions, here's a day that shakes up currency traders and dispels the torpor of the start of the year.

With the publication of the US 'NFP', we are witnessing the biggest market movement since January 2 (the Euro had lost -0.9% against the $) and the Single Currency falls -0.8% towards 1.0780.
The Euro is closing in on the mid-December low of 1.0765 (of 10, 11 and 12/12/2023).
Should it break through, the next target would be around 1.0670, the former low of May 31 and November 6 2023, followed by 1.0550 (low of 7/3/2023).
The Dollar Index jumps +0.9% to 104.01 (highest of the day, but also since December 12) and breaks out of the 103/103.6 corridor, with a 1st target at 104.15.

The greenback soars +1.35% against the yen to 148.4 and +0.9% against the pound (unchanged against the euro), and also climbs +1.15% against the Swiss franc to 0.8670.

The Dollar benefits from a +20Pts jump in the yield on '2-year' to '10-year' T-Bonds following the publication of the 'NFP': job creation in the USA was twice as high as expected (353,000 vs. 175 to 180,0000), not to mention a sharp upward revision of December's figures (+117,000 to 333,000).
Wage costs also jumped by +0.6% instead of the 0.3% anticipated.

And that's not all: US consumer sentiment rose sharply in January to 79, reaching its highest level since July 2021, show the final figures from the University of Michigan survey published on Friday (versus 69.7 in December).

This month-on-month increase of over 13% has only been surpassed five times since 1978, says Joanne Hsu, the report's author, who points to an improvement in confidence not only linked to consumers' personal financial situation, but also to the economic situation in general.
The current conditions component rose to 81.9 from 73.3 the previous month, while that measuring expectations climbed to 77.1 from 67.4 in December.
As in the preliminary version, one-year inflation expectations were confirmed at +2.9%, the lowest since the end of 2020.

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