Hello It’s Monday December 5th, and I’m Nathalie Woods with UFX Markets daily news
The US Dollar strengthened versus most of the majors after worse than expected Payrolls data. The market added 120 thousand jobs while the forecast predicted 125 thousand jobs. On the other hand, the unemployment rate unexpectedly dropped to a 2.5 year low from 9% to 8.6%. Wall Street closed with a mixed trading week mixed as the NASDAQ rose by 0.03% and the Dow Jones declined by 0.01%. Crude oil rose to a two-week high by 1.00% and closed at $101 a barrel amidst concern that tension between Iran and the West will intensify, threatening shipments from OPEC’s second-biggest crude producer. Gold rose by 0.10%, closing at $1, 746 an ounce.
The Euro fell versus the Dollar after the US unemployment rates unexpectedly dropped to a 2 and a half year low. However, the pair erased it’s loss on speculation that the Italian cabinet may pass new budget cuts and tax increases valued at 24 billion euros to shore up the country’s finances. Most of the attention will be focused at the European summit this week where the region’s leaders will try to resolve their sovereign-debt crisis. Trading above the support level of 1.3380 will keep the momentum of the pair positive, but if the pair breaks below this support level, it may reach the 1.3280 level again. Overall, the EUR/USD traded with a low of 1.3360 and with a high of 1.3549. The EUR/USD last traded at 1.3420.
The British Pound fell versus the Dollar after the release of the US economic data last Friday. The trend for the pair will remain bearish if the pair maintains its resistance level of 1.5620. However, if the pair breaks that resistance, it may reach the 1.5720 level again. Overall, the GBP/USD traded with a low of 1.5576 and with a high of 1.5725. The GBP/USD last traded at 1.5600.
The Yen finished lower versus the Dollar amid an improvement in market sentiment. Technically, if USD/JPY will maintain it’s support level of 77.70, the trend will continue to be bullish. As a result the pair may test it resistance level of 78.20. The USD/JPY last traded at 77.90.
The Canadian Dollar declined versus the U.S Dollar on Friday due to a worse than expected Unemployment Rate which rose to 7.40% vs. the previous 7.30%. The trend for the pair will continue to be bullish if the pair maintains its support level of 1.0140. The USD/CAD last traded at 1.0170.
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