ForexLive US wrap: A combo platter boosts EUR/USD
Written by Jamie Coleman
June 3, 2011 at 20:15 GMT
■US non-farm payrolls rise 54,000; jobless rate rises to 9.1%
■Non-manufacturing ISM rises to 54.6 in May from 52.8 in April
■EU/IMF/ECB Troika: Mission ends positively; aid likely released in early July; tax collection and privatization to be overseen by “independent” entities; more Greek aid likely
■US yields fall 3.5 bp to 2.99%
■S&P 500 falls 1% to 1301
■oil rises 0.07 to $100.46, reversing $2 intraday decline; gold rises $9 to $1541.50
Payrolls were even worse than feared rising only 54,000 in May squashing any hope of the Fed returning to anything approaching a normal monetary policy in 2011, at a minimum. The market was prepared for a weak figure and headed into the release quite long of EUR/USD. The knee-jerk rally after the data was to 1.4530 from 1.4500, followed by a swift pullback to 1.4450 as equities and commodities fell on the data. We did not stay down for long and soon were taking out a 1.4450 barrier, the 61.8% retracement if the 1.4940/1.3980 decline at 1.4468 and chart resistance at 1.4488. We close well-north of all three of those levels with the market soothed by the prospects of a slowing-but-not-collapsing US economy (ISM was strong, remember) and the Greek situation dealt with, at least in the short-term. Bulls hope for a hawkish Trichet to keep the momentum going next week.
USD/JPY fell to 80.05 from 80.68 after the data with cries of QE3 ringing in traders ears. We never traded lower, and at one point managed to rally almost all the way back to where the fall began before turning south again. US real money accounts were very heavy sellers of USD/JPY late in the European session and the pair remained offered throughout the US afternoon. We end at 80.19.
Another day, another record low for USD/CHF. We fell as low as 0.8336 intraday and end only marginally firmer at 0.8349.
It was a mixed session for commodity currencies. It was risk-off, risk-on and then risk-diverging as stocks fell but commodities held their ground. AUD/USD ends mid-range at 1.0720, after falling to 1.0595 after the data and leaping to 1.0773 as EUR/USD broke north around midday.
Written by Jamie Coleman
June 3, 2011 at 20:15 GMT
■US non-farm payrolls rise 54,000; jobless rate rises to 9.1%
■Non-manufacturing ISM rises to 54.6 in May from 52.8 in April
■EU/IMF/ECB Troika: Mission ends positively; aid likely released in early July; tax collection and privatization to be overseen by “independent” entities; more Greek aid likely
■US yields fall 3.5 bp to 2.99%
■S&P 500 falls 1% to 1301
■oil rises 0.07 to $100.46, reversing $2 intraday decline; gold rises $9 to $1541.50
Payrolls were even worse than feared rising only 54,000 in May squashing any hope of the Fed returning to anything approaching a normal monetary policy in 2011, at a minimum. The market was prepared for a weak figure and headed into the release quite long of EUR/USD. The knee-jerk rally after the data was to 1.4530 from 1.4500, followed by a swift pullback to 1.4450 as equities and commodities fell on the data. We did not stay down for long and soon were taking out a 1.4450 barrier, the 61.8% retracement if the 1.4940/1.3980 decline at 1.4468 and chart resistance at 1.4488. We close well-north of all three of those levels with the market soothed by the prospects of a slowing-but-not-collapsing US economy (ISM was strong, remember) and the Greek situation dealt with, at least in the short-term. Bulls hope for a hawkish Trichet to keep the momentum going next week.
USD/JPY fell to 80.05 from 80.68 after the data with cries of QE3 ringing in traders ears. We never traded lower, and at one point managed to rally almost all the way back to where the fall began before turning south again. US real money accounts were very heavy sellers of USD/JPY late in the European session and the pair remained offered throughout the US afternoon. We end at 80.19.
Another day, another record low for USD/CHF. We fell as low as 0.8336 intraday and end only marginally firmer at 0.8349.
It was a mixed session for commodity currencies. It was risk-off, risk-on and then risk-diverging as stocks fell but commodities held their ground. AUD/USD ends mid-range at 1.0720, after falling to 1.0595 after the data and leaping to 1.0773 as EUR/USD broke north around midday.
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