US Dollar Looses Ground After Weak Non Farm Payroll Report

February 10, 2009

US Labor Department announced that US economy lost 598,000 jobs in January. The December was revised lower to a 577,000 loss. The unemployment rate climbed to 7.6 percent, setting a 16-year high for this figure. The figure on the left summarizes the biggest monthly falls in NFP for the past year.

”These employment numbers are dreadful, but does it matter?” said Alan Ruskin, senior analyst at RBS’s global banking and markets division. “Not for the market today. All the prior labour market indicators, notably the claims data, gave a feeling of foreboding before these numbers. The data broadly delivered.” US Dollar lost ground against euro and pound. Further declines in the USD are expected to continue in the week to come. Although the EUR/USD is in a downtrend, weak report from the US allowed euro to pullback to the 1.3000 level.

Posted by forexsource under Uncategorized | Comments (0)

EUR/USD Hovering around 1.2700 Level

February 1, 2009

As seen in the chart below EUR/USD is currently trading at 1.2730, 30 pips above the 1.2700 level. Euro is making a steady decent in the last couple of days reaching early December lows. If the 1.2700 support is broken and stops will be tripped we should see a small rally leading to a further decline. One of the fundumental reasons for euro’s weakness is the PPI report which will come out on Tuesday. It is expected to show that European producer prices slid for a fifth month, giving the ECB central bank another reason to cut interest rates.

Today’s Strategy Sell rally off the 1.2700 level, place a stop at 1.2740 and a limit at 1.2622. (Results will be posted in the comments section after the trade is closed)

EUR/USD February 01, 2009 Chart

Posted by forexsource under Daily Trading Strategy | Comments (0)