ForexLive US wrap: Payrolls barely budge; rates slide

US non-farm payrolls rise 18,000 in June; May revised down to 25,000; Unemployment rate rise to 9.2% US wholesale inventories rise 1.8% in May; more than expected US consumer credit rises $5.1 bln in May Obama: More can be done now to spur hiring Speaker Boehner: Debt deal Sunday not imminent ECB's Bini-Smaghi: Euro an incomplete construct Draghi: World in a currency war; causing imbalances; ECB has no mandate to act on exchange rates S&P 500 falls 0.7% to 1344 US 10-year note yield falls 12.5 bp to 3.015% Oil falls $2.33 to 96.35; Gold rises $11 to $1543 The market was stunned by today's US employment report. The knee-jerk reaction was a risk-off slide in EUR/USD 1.4205 followed by a swift rise to 1.4350. If that move didn't kill you, the subsequent slide back to 1.4212 probably did. Concerns over Italian banks needed to raise billions in fresh capital despite assurance from Draghi that all the big banks would pass sent stocks in Europe tumbling and helped overshadow the US employment report, surprising;y enough. USD/JPY was in the process of trying to trigger stops above 81.50 when the employment report hit the tape. Result? An instant slide to 80.60 where it promptly went into suspended animation for the balance of the session. EUR crosses were all crushed, but none worse than EUR/CHF. From 1.2144 at the data release we dropped to 1.1980 within minutes. We fell as low as 1.1908 and close around 1.1925. AUD/USD fell from around 1.0770 ahead of the data to 1.0705 on general risk aversion. It greatly outperformed its peers in quiet afternoon trade, recouping most of its losses, ending around 1.0755 ahead of Chinese CPI on Saturday.