WTI rose despite the publication of the report NFP as analysts. Gold rose the most in the last three weeks amid growing demand for the precious metal after the announcement of NFPs. The wheat has been increasing due to the expansion of drought conditions in America's largest exporter. Copper was down after the NFP report was announced disappointing, America was the second largest importer of copper globally.
European capital market rose amid positive macro data published in the U.S. economy. U.S. stocks fell after the report was published disappointing NFP. Asian capital market has been shrinking for the first time in the last nine days after the technology company shares led the decline.
The Canadian dollar reached maximum six weeks after the unemployment rate fell. The U.S. dollar has been declining following the publication of disappointing NFP report. Pound lows last week after a report showed a decline in housing prices in the UK. The Australian dollar was close to the maximum last four months against the dollar amid improvements of the Australian economy.
Brent crude rose amid concerns that it will reach an agreement between the Libyan government and rebels to reopen the oil ports. Gold fell amid positive U.S. macro data that led to reduced demand for the precious metal. The wheat has been increasing due to the expansion of drought conditions in America's largest exporter.
European capital market has fared stagnant after Mario Draghi reiterated that it would take measures to support the euro area economy. U.S. stocks fell on Wednesday after the S & P 500 hit a new historic high while investors expected NFP report today. Asian equity markets fared fluctuating on a low trading volume and heading for the second consecutive weekly gain.
The European currency last month lows against the U.S. dollar amid ECB President declarations regarding the risks of deflation in the euro area. British Pound weakened against the dollar after the service sector PMI indicator came under analysts' estimates. The dollar reached a maximum of the last ten weeks before the Japanese Yen as investors await today's NFP report.
While the industry looks reasonable Eurozone and unemployment decreases , Brake gently touches UK
Euro revenge was decided before the figures as estimates of British industry . The decline in unemployment to 11.9 % and agreeable figures Eurozone industry - forecasts versus the absolute value are significantly below those of the " island " British - they got better , but it would not have been enough without increasing employment in Germany. 0.83 However landmark looming as a strong barrier . Favorable sentiment vis-a -vis the Euro is based on the suspicion that the ECB will be reserved for Thursday - at least questionable hypothesis . The balance can then re -balance or even push the pound to the fore , but EUR / GBP could have potential in the wake of the current perception . Australia chooses smooth road
RBA decided last night that it's better to wait , keeping interest rates at 3.5% , a plateau still quite juicy for traders willing to take the difference to the cost of funding from developed countries . Governor Stevens is no longer as concerned about Australian dollar strength , but the statement noted , preventive , because it is stronger than the historical standard . But perhaps the recent weakness of the dollar is largely the result of signs of landing in China: PMI for small firms in the industry reached 48 points , marginally above the region untouched by the financial crisis times .
EURUSD tested the 1.3850 level, failing to remain above this level, and the price is back and lateral movement between 1.3750 and 1.3820. Support and resistance levels are represented on the graph. Mario Draghi's statement wait and watch with interest the move with these conferences.
Euro has found comfort in the dollar near the 1.38 level , only to slip back into an emotional movement that rhymes with aggressive impulse , but to the contrary, yesterday . Data from Germany talk about a trend still favorable German business confidence , according to IFO - a sign less worrying than the brakes put PMI indicators for industry and services in the information Monday . In industry , the assessment of this is sunny , but the future is less cheerful now shown in sondja . Maybe that Germany remains on growth , but not enough to save Euro downward pressure . Fed has put many investors thought , and if the line is followed to mitigate the dollar has to much better times . Even with the numbers slightly below expectations of real estate index S & P/CS20 , advance annualized price down to 13.2 % , the dollar gained versus the Euro ( but lost in terms of gold ) . A member of the FOMC known for his approach to " restrictive " Yellen reinforced his message , saying that the specification of six months (the famous period suggests a timetable for raising interest rates in the beginning of 2015 ) was not a mistake. Plosser was still surprised by the reaction showed broad markets .
Nervousness will increase, and perhaps as markets digested the new orientation of Fed , Euro will be revisiting episodes lows in the 1.3705 and possibly below.
Pair EURUSD keeps decreasing trend as seen on H4 chart. Overcoming the sense ascendend 1.3810 level with a close above this level could lead us to think of a climb to the resistance level 1.3850 and then 1.3890. But stick to our scenario where we follow the following decreasing levels of support at 1.3750 or 1.3710 and then 1.3695.
Dollar and gold reflects the orientation Fed speakers , but not the risk
Jeremy Stein , member of the committee that decides monetary policy in the U.S. has sent a very important message Friday markets : policies should foster financial stability right now and not creating jobs. Risk premiums are too low in bond markets , and this is a warning sign , because at some point they will return to normal, and the movement can be a side effect . John Williams , head of the San Francisco Fed on the other hand believes that other tools should be used and not the interest rate to prevent speculative bubbles . Only Kocherlakota insisted that orientation must remain one stimulating the economy. For the first time there has been a current of opinion within the most powerful central bank that is concerned about the detached attitude of the markets , which may be risks to the financial system ( although no mention Lehman ) . On the other hand , troops massing on the border between Russia and Ukraine and downing a Syrian plane Turkey have brought incremental risk aversion .
The dollar rose moderately in the Asian session , at least until the Markit PMI data , but gold indexes fell and kept a cheerful tone . In Asia , the surplus went from 0.17 % to 1.91% in Australia in Hong Kong , although the index for the industry in China speaks more strongly of contraction of the sector. And to win bounded to the Euro , the dollar figures needed noticeably weak in Germany, where both the index and the service industry were disappointed, dragging down the values published for the whole Euro area .
The conclusion ? Investors in capital markets will not hear messages of Fed caution , at least for a while largely ignoring the tumult that is gold slipping, although geopolitical risks are rising. Who will win this month or in today's session ? Optimists have a reasonable chance in the short term .. but important adjustment is fast approaching .
Crimea has historic roots and is populated mostly by Russians, Russian president suggested, adding that the referendum is legal. Russia must be respected and not pushed into a corner. Firm but balanced, Putin insisted that the rights of other nationalities are respected and have avoided a return to the Cold War. Biden condemned the annexation of the peninsula and spoke of additional penalties that may be imposed on Russia. Putin said that not be taken other territories - and investors optimistic assumption given credence, throwing himself passionately into shares available for sale at prices climb.
Brake German financial experts put the trust was sharp at the first sign of danger along the way , and safety systems intervene to keep the trajectory . It is natural to see a strong reaction from the country which is closely related to Russian energy and the exporting third of total goods shipped to the EU, mainly machinery and equipment with high added value . Indicator for Germany lost 9.1 points, but is still 22 points above the historical average . So difficult road ahead, but the climb continues. For two rounds of volatility Euro shook not maintain the upward trend is likely to test even the Fed on Wednesday. U.S. comes still a big question : how serious is reducing holdings of U.S. Treasury bonds by non-residents ? And does the liquidation of December and January , to 28.6 billion dollars , continued aggressively in February and March ?
EURUSD broke Friday local resistance and accelerated to over 1.3900, reaching a maximum at 1.3936. If the next evolution will bring in support from 1.3890, we can expect a little slip deeper into 1.3850.
WASHINGTON (AP) — The Labor Department reports on the number of people who applied for U.S. unemployment benefits last week. The report will be released at 8:30 a.m. Eastern Thursday.
SMALL REBOUND LIKELY: Economists forecast the number of people seeking benefits will rise 7,000 to a seasonally adjusted 330,000, according to a survey by FactSet. That modest increase would follow a sharp drop in applications two weeks ago to 323,000, from 349,000.
JOB MARKET ON THE MEND: Applications are a proxy for layoffs. They are currently close to pre-recession levels, a sign that companies are cutting few workers. That suggests they are confident the economy will continue to grow in the coming months. Story: Paul Ryan Gets Serious About Poverty
Hiring picked up in February after two sluggish months, the government said last week. Employers added 175,000 jobs, up from 129,000 in January and close to the monthly average of the past two years.
The unemployment rate ticked up to 6.7 percent, but the increase occurred partly for a good reason: more people started looking for jobs. Most weren't immediately hired, boosting the unemployment rate. But the fact that they started job hunting suggests they were optimistic about their prospects.
Last week's jobs report suggested the economy was recovering after harsh winter weather caused auto sales to dip, sales of existing homes to plummet, and Americans to spend less at stores and restaurants. Video: Sen. King: U.S. Needs to Focus on Deficit Reduction
Employers advertised more jobs in January, a separate government report said earlier this week, suggesting that hiring will likely remain steady in the coming months.
The weather did force about 6 million people with full-time jobs to work part-time in February. Many of their paychecks will shrink, likely weighing on spending.
That's one reason economists forecast growth will slow to an annual rate of 2 percent or less in the first three months of this year, down from 2.4 percent in the final three months of last year. But as the weather improves, most analysts expect growth to rebound to an annual rate near 3 percent.
FXStreet (Córdoba) - The resilient euro rallied during the American session and climbed back above 1.3900 to retest its 2-year high scored last week just before the nonfarm payrolls report.
The EUR/USD was underpinned last week by ECB decision to keep policy unchanged and Draghi unwillingness to reveal new measures, reaching a 28-month high of 1.3914. Then, stronger than expected US NFP tempered the rally but the shared currency remains strong despite broad risk aversion. The EUR/USD resumed the advance after a phase of consolidation and it is presently threatening 2014 highs at the 1.3910/14 area.
1.4000 at sight
The EUR/USD however is facing tough resistance at that level, and a break will most likely trigger stops orders unleashing another bullish leg, that could take the pair towards 1.4000 in no time. On the other hand, 1.3830 (Mar 11 low) stands as key support level.