Investors Shrugged off the Data, EUR/USD shows Strength

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Investors Shrugged off the Data, EUR/USD shows Strength

Post  harpal1980 on Mon Jan 11, 2010 1:07 am

Friday’s session showed market participants that despite a gloomy employment report, the markets are still resilient to unpleasant data. Following the Bureau of Labor Statistic’s employment report, the major indices found support during the session and rallied higher throughout the last hour of the trading day. The S&P500 closed the session with a 0.29% while the Nasdaq closed higher by 0.74%.

The unemployment report came out as expected, holding at a double digit figure of 10%. The NFP report shocked economists and disappointed Dollar bulls as the U.S economy showed that it had shredded 85k, compared to expectations of a ‘no change’. Employment fell in construction, manufacturing and wholesale trade, while temporary help services and health care added jobs. One must note that the worse than expected NFP result will probably put further pressure on the Fed and delay any rate hikes for the time being. This could have a direct affect on the Dollar and cause further weakness.

Monday opened on a positive note as the Asian markets climbed higher. According to Bloomberg news China’s exports surged, which signaled that the global economic demand is picking up. Their exports climbed 17.7% from a year earlier, the first increase in 14 months. The Nikkei index is currently trading with a 1% gain, while the MSCI increased by over 1.5%.

Read the full article at Dodjit.com

harpal1980

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