The markets whipsawed sharply this morning following the release of the highly anticipated May US jobs data. Non-farm payrolls triggered a steep spike in riskier assets with the euro surging by nearly 100-pips against the dollar to 1.4266 within minutes of the release and the Dow Jones equity futures gaining by over 100-pts. Consensus estimates were looking for a loss of 520k jobs in non-farm payrolls for May. Instead, the data revealed a sharply improved reading at -345k jobs versus an upwardly revised 504k jobs shed in April. The unemployment rate, however, spiked to its highest level since 1984 by more than forecast to 9.4% in May, versus 8.9% a month earlier.

As traders digested the economic reports, the dollar reversed all of its losses and rallied sharply across the board - propelling nearly 3-cents against the euro from its session lows at 1.4266 to 1.3974. The equity bourses opened flat on the session, retreating from its pre-market levels and edging up marginally in morning trading. Crude oil jumped higher in the morning, briefly flirting with the $70 per barrel level before backing off toward $69.20 per barrel. Meanwhile, spot gold drifted lower, slipping toward $963 per ounce.

Canada also released its labor report for May earlier today. The unemployment rate was higher than forecast, edging up to 8.4% -- its highest level in 11-years and up from 8.0% in April. The May employment change revealed a loss of 41.8k jobs, more than the 33.0k loss forecast.

Euro Plunges on Sharp Reversal

EURUSD has stabilized from its 3-cent freefall earlier this morning, regaining its footing above the 1.40-level. Succumbing to broadbased dollar strength, the single currency sharply relinquished its initial non-farm payrolls advance to sink to 1.3974.

With no economic data released from the Eurozone overnight, markets assessed the June monthly report from Germany's Bundesbank. The report revealed expectations for Germany's economy to contract by 6.2% in 2009 and remain flat in 2010, with the forecasts being a reflection of the massive economic downturn. The Bundesbank expects the German economy to stabilize by Q3 of this year with downward pressure on the economy likely to ease during the course of 2009, although it does not look like there will be a significant upturn in the near future.