The payrolls came and went and the markets are back roughly to where they were before the report. The payrolls figure itself was not the big news, but the detail of the report was. We were particularly impressed by the broad-based jobs growth, the shares of industries showing jobs gains in February was at its highest rate since 1988. Even the construction industry created 33k jobs during the month.

This along with a drop in the unemployment rate to 8.9%, is extremely encouraging, and the Fed will be pleased to see the labour market moving in the right direction. This has fuelled a mini-rally in the greenback, so it might be next week before EURUSD makes takes a stab at the 1.4000 level.

Best Regards,

Kathleen Brooks| Research Director UK EMEA |

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