Following the opposing employment statistics coming from the States last week, the USD fell against many currencies.
US unemployment rate was down below forecast of 5.9%; actual 5.8% from previous 5.9%.
However, non-farm employment change was also down from 265k to 214k.
Janet Yellen from the FED stated that the employment rate was evidence of a solid economic report but confidence was knocked slightly in the strong dollar bringing the greenback down.
EFFECTS ON FOREX
EURUSD – The downward trend, specifically from last week’s statement from ECB’s Marios Draghi, saw an upturn based on the US employment data. Since Monday the pair has continue the uptrend from Friday last week, breaking the 1.25 resistance level.
USDJPY – Down on Friday to 11420 as the Bank of Japan made statements concerning an increase in GDP. This may have been a correction on last week’s market.
USDRUB – The ruble is trying to restabalise and with a 200 pips reversal pattern in evidence a bullish sentiment hit the market in favour of the ruble.
USDZAR– Due to the South African rand’s correlation with gold, the country’s staple income, the ZAR gained against the dollar when on Friday gold also went up, causing the ZAR to rise, in addition to the US employment data bringing the dollar down.
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