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Mixed NFP leads to mixed end to the week

The US jobs report for last month was something of a mixed bag with the best headline reading in 4 months being negated by an unexpected drop in the average hourly earnings. Overall the report could be described as mildly positive, but with expectations for a Fed rate hike already at near record levels and a strong push higher in recent weeks in the buck, the US dollar has fallen slightly following the release.

The GBPUSD (+0.64%) is one of the biggest gainers on the day, with the AUDUSD (+0.54%) and NZDUSD (+0.70%) both also firmly higher. The simultaneous release of the Canadian employment data, which was also slightly stronger on balance has seen USDCAD (-0.18%) continue its recent oil-induced declines. 

Elsewhere oil benchmarks are trading close to their highest levels of the year on the European close with Brent (+1.14%) ending a good week on the front foot and above the $54 handle. Silver (+1.46%) has moved strongly higher since the US data release and is outperforming Gold (+0.36%) on the day. 

Stock indices are showing some small gains on their final trading session of the week with the DE30 (+0.35%) shrugging of some early weakness to trade back in positive territory on the day and above 10500 once more. Across the pond the US500 (+0.19%) looks on course to end higher after two successive down days, with tech stocks (as shown by the US100 (+0.30%) rising leading the charge. 

Looking ahead the Italian referendum over the weekend has the potential to produce some large moves when markets re open on Monday. This could impact the main event of next week with the ECB meeting on Thursday to announce the outcome of their latest policy decision meeting. In less important events from a global perspective, Monday sees the UK and US release their leading services data and Tuesday sees the final RBA decision of 2016. Wednesday has the Bank of Canada rate decision and crude oil inventories before Friday sees the University of Michigan consumer sentiment.  

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