USD Buying Continues

Daily Forex Fundamentals | Written by AC-Markets | Jun 08 09 08:40 GMT |

Market Brief The Usd was stronger in the Asian session, as the mixed US data has given recovery bulls a moment of pause. The EurUsd traded down to 1.3890 from 1.4000, while the UsdJpy rose sharply to 98.80 from 98.20 (now trading above daily cloud covering). Commodity prices have also retreated, with copper and crude falling from yearly highs. And 2-year Treasury yields surged by 35bp to 1.29%, while 10-year Treasury yields rose by 13bp. Asian regional indexes were mixed, but European indexes are all trading lower. The big question is: was Friday's stark reversal a sign of things to come or just a short term correction? The big story and one still being debated was Friday's labor numbers, which showed that Non-Farm payrolls declined by 345k vs. 520k exp, yet unemployment rate rose to 9.4% vs. 9.2% exp. It's important to note that the US bank stress tests worst case scenario was based on a 9.3% figure, which has already been breached. The lack of fresh data will keep FX markets guessing and we expect a continuation of Friday's trend in the short term. 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.