Dollar Mixed after Poor U.S. Jobs Report

Dollar Mixed after Poor U.S. Jobs Report

The U.S. Dollar is trading mixed following the release of a poor October jobs data report. Traders were positioned for a loss of 175,000 jobs but the report showed a loss of 190,000. In addition, the unemployment rate climbed to a 26-year high to 10.2%.

The U.S. Dollar is trading mixed following the release of a poor October jobs data report. Traders were positioned for a loss of 175,000 jobs but the report showed a loss of 190,000. In addition, the unemployment rate climbed to a 26-year high to 10.2%.

The Non-Farm Payrolls Report encouraged traders to buy the U.S. Dollar as a safe haven investment on the thought that a weaker U.S. economy means the global recovery may stall. Chicago financial markets also increased bets that the Fed will keep interest rates low.

This week-end the G-20 meets in Scotland. Members will discuss the value of the Dollar and Asian currency rates then take a group photo on the steps of some famous building.

At the mid-session in New York, the Euro is trading lower. The British Pound and Swiss Franc are flat. The Dollar is losing ground to the Japanese Yen as traders seek safety in the lower yielding currency.

The USD CAD is trading higher after the Canadian Jobs Report showed an unexpected loss. Traders were looking for an increase of 10,000 jobs but the report showed a loss of 43,200. This bad report was most likely caused by the recently high priced currency. The Bank of Canada had been warning that a high priced Canadian Dollar would slowdown the economy’s growth.

The AUD USD is trading higher on the news that the Reserve Bank of Australia increased GDP expectations. It also hinted at future interest rate hikes. Gains will most likely be limited if appetite for risk declines.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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