Weak November Jobs Report Triggers Market Rally: USD Weakens While EUR/USD Surges Past 1.179, GBP/USD Climbs to 1.3452

rugdoc.eth · 2026-01-12T13:22:22+00:00

November's disappointing employment figures led to a paradoxical rally in risk assets, with non-farm payroll growth of only 64,000 and unemployment rising to 4.6%. This spurred significant currency and asset price fluctuations, influencing market expectations around interest rates and impacting the cryptocurrency sector.

rugdoc.eth

2026-01-12 13:22:22

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The disappointing November employment figures sent shockwaves through financial markets, yet paradoxically ignited a broad rally in risk assets. The U.S. non-farm payrolls expanded by only 64,000—a modest figure that fell short of market expectations—while the unemployment rate climbed to 4.6%, marking the highest level seen since September 2021. This surprising combination sparked immediate repricing across multiple asset classes.

Currency Markets Pivot on Softer Labor Data

The forex complex responded decisively to the employment disappointment. The USD/JPY dropped sharply to 154.39 as the U.S. Dollar Index weakened below the 98 level, losing its recent strength. Meanwhile, EUR/USD surged to 1.1791 and GBP/USD rallied to 1.3452, reflecting the dollar’s broader retreat. For context, this GBP/USD level represents approximately 33 GBP to USD conversion at the session’s highs, demonstrating sterling’s renewed strength against the greenback. The currency dynamics reflected market expectations that softer labor conditions could constrain future rate hikes.

Safe Havens and Risk Assets Both Rally

In an unusual market environment, precious metals benefited from the shift in monetary policy sentiment. Spot gold gained approximately $5, advancing toward the $4,306 per ounce level. Simultaneously, stock index futures climbed higher as traders repositioned for a potentially more accommodative policy stance.

Implications for Crypto and Beyond

This mixed employment reading raises important questions about the Fed’s next moves. With labor market momentum clearly decelerating, traders will scrutinize upcoming data releases for clues about inflation trajectories and policy normalization timelines. These macro developments carry outsized relevance for the cryptocurrency market, where sentiment hinges on expectations surrounding rates, liquidity conditions, and broader risk appetite. The session underscores how macroeconomic releases can trigger significant shifts across currency pairs, commodities, and emerging assets—a reminder that monitoring major economic indicators remains essential for navigating current market conditions.

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