U.S. Dollar Rallies After Disappointing Jobs Report

The U.S. Non-Farm Payroll Report came out worse than expected. Traderswere looking for a loss of between 175,000 and 225,000 jobs.

The U.S. Non-Farm Payroll Report came out worse than expected. Traders were looking for a loss of between 175,000 and 225,000 jobs. The actual number showed a loss of 263,000 jobs. The biggest job losses occurred in construction, manufacturing, retail and the government. Healthcare was positive.

The U.S. Dollar is gaining ground against all major currencies except the Japanese Yen. Investors are looking at this report as a sign that the government stimulus plan may not be working. Traders are keeping away from higher yielding assets and seeking the safety of the Dollar.

The Dollar is posting its strongest gains versus the British Pound and the Canadian Dollar. The main trend is down in the British Pound and traders expect this currency to reach 1.5200 before strong buyers step in. The charts indicate plenty of room to the downside. Lower equity and crude oil markets are helping to pressure the Canadian Dollar.