New Work Places Sink Dollar
For some strange reasons good data on October nonfarm payrolls which came out today had a very bad impact on dollar's pricing against major currencies. With 1.4524 on EUR/USD greenback fell down to its new historical minimums as with Canadian dollar - USD is now worth only 0.9326 CAD.
Monthly nonfarm payrolls is one of the most looked at health barometers for U.S. economy. With a very weak past two month numbers (96k in September; 93k for August), report for October gave a far more better picture of the employment market - 166k new nonfarm payrolls. With the expectation averaging at 80k, this should have added to dollar's value on Forex. Overall unemployment rate remained at 4.7% percents and will hardly move up or down until the end of the year.
Factory orders for September gave another pleasant surprise for dollar bulls increasing by 0.2%. That is compared to -3.5% in August and expectations near -0.4%.
All these positive factors could move EUR/USD back to 1.4300-1.4400 range, but instead it rallied to new historical maximums. In my opinion this can be explained only by historically high oil and gold prices. It can be almost certainly that next week we'll see a correction on EUR/USD, in which today's employment data will play the role of catalyst.
Monthly nonfarm payrolls is one of the most looked at health barometers for U.S. economy. With a very weak past two month numbers (96k in September; 93k for August), report for October gave a far more better picture of the employment market - 166k new nonfarm payrolls. With the expectation averaging at 80k, this should have added to dollar's value on Forex. Overall unemployment rate remained at 4.7% percents and will hardly move up or down until the end of the year.
Factory orders for September gave another pleasant surprise for dollar bulls increasing by 0.2%. That is compared to -3.5% in August and expectations near -0.4%.
All these positive factors could move EUR/USD back to 1.4300-1.4400 range, but instead it rallied to new historical maximums. In my opinion this can be explained only by historically high oil and gold prices. It can be almost certainly that next week we'll see a correction on EUR/USD, in which today's employment data will play the role of catalyst.
Labels: factory orders, nonfarm payrolls, unemployment rate
posted by enivid at 7:21 PM
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