USD Crumbles As Non Farm Sparks Euro Rally

Daily Forex Fundamentals | Written by Easy Forex | May 11 09 01:08 GMT |

U.S. Dollar Trading (USD) finished the week at multi-month lows against the Euro as better than expected US Job Data allowed risk appetite to jump another notch higher. April Non-Farm Payrolls were down -539K vs. -590K forecast. The Unemployment Rate leaped to 8.9% vs. 8.5% previously. Crude Oil was up $1.92 ending the New York session at $58.63 per barrel. In US share markets, the Nasdaq was up 22 points or 1.33% and the Dow Jones was up 164 points or 1.96%. The Euro (EUR) held to the 1.3400 area before the US data prompted a rally that did not stop until above 1.3600. The catch-up of the Euro post ECB allowed most of the crosses to gain led by the EUR/GBP and EUR/JPY. March German Industrial Production remained flat vs. -1.3% expected. Overall the EUR/USD traded with a low of 1.3342 and a high of 1.3629 before closing at 1.3621. The Japanese Yen (JPY) even the relentless rise in risk appetite couldn’t stop the USD/JPY sliding on the back of USD weakness. Losses were limited however as crosses providing plenty of support. Overall the USDJPY traded with a low of 98.32 and a high of 99.60 before closing the day around 98.50 in the New York session. The Sterling (GBP) support at 1.5000 was tested with the market still worried about the expansion of the BOE’s Quantitative Easing program. The Key support held and the subsequent rally helped the Pound close above 1.5200 at its highest level since January. Overall the GBP/USD traded with a low of 1.4980 and a high of 1.5220 before closing the day at 1.5216 in the New York session. The Australian Dollar (AUD) continued to behave like a fast Euro shooting to above 0.7700 or 8 Month Highs. AUD/JPY buying and support from commodities underpinned the move higher. Resistance is thin at these levels and could see 0.8000 tested if stocks can continue to gain. Overall the AUD/USD traded with a low of 0.7509 and a high of 0.7707 before closing the US session at 0.7697. Looking ahead, April Nab Business Confidence previously at -13. Gold (XAU) struggled to take advantage of the USD weakness as demand for gold eased. Overall trading with a low of USD$905 and high of USD$920 before ending the New York session at USD$916 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products