Markets Bask In The Light Of Optimism As Aussie And U.S Jobs Figures Bolster Sentiment.

Daily Forex Fundamentals | Written by AC-Markets | May 07 09 09:52 GMT |

Market Brief Yesterday marked yet another step out of the lugubrious climate we have tentatively tried to escape from in the attempt to find a bottom to the global economic crisis. ADP Figures out of the U.S which 'is a measure of nonfarm private employment, based on a subset of aggregated and anonymous payroll data that represents… roughly 24million employees'. Markets were expecting a -645K decline, however the -491K number was a welcomed surprise. The good news didn't stop there, the Aussie jobs reports stunned markets actually rising by 27.3K and beating expectations for a -25K decline. The Aussie dollar stepped over a crucial level at 0.7486 (which is the 38.20% retracement level on the move down from last year's July high at 0.9850). Is the Aussie set to rise to 0.7941 (50% retracement on the same move)? Given that the AUD and NZD are now prone to carry trades. The EURUSD traded a very volatile session as markets await the results of the U.S Treasuries' stress test results they conducted on the 19 largest banks in the country. Early signs point to 10 banks needing recapitalization but Treasury Secretary Tim Geithner assured markets that none of the 19 banks were at risk of insolvency. Expect the dollar to strengthen amidst the good news. Another crucial headline today is the ECB and BoE meetings, both central banks will have to elaborate on the effectiveness of their QE. Furthermore the ECB will probably announce some sort of non-conventional means to address the economic climate in Europe, a move pundits say is long overdue as the bank has been laggard to respond to the global crisis. Japanese stocks rose 4.55% this morning on the encouraging jobs news out of the U.S and Australia. Markets in Asia in general have been on good footing with Hong Kong up 1.8% - which is preempts the European and U.S Sessions. ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.