5 Apr 2014
Session Recap: US stocks tumbles, JPY soars… the old story in a NFP day
FXStreet (Córdoba) - The employment report in the US and falling stocks were the main drivers in the American session. Commodity currencies soared while the Europeans dropped, but the best was the Yen, that gained momentum as Wall Street turned negative.
Stocks in the US opened in positive territory after the Bureau of Labor Statistics released the employment report: the economy created 192.000 jobs in March, slightly below expectations. But share prices started to pullback and then dropped sharply, sending the NASDAQ to -2%. The Japanese currency gained on risk aversion and on falling US Treasury yields.
The USD/JPY lost 70 pips, making an important reversal from above 104.00 and closed at daily lows at 103.20. Yen crosses finished the week with a strong reversal that could anticipated more corrections ahead.
Commodity currencies, lead by the Australian dollar rocketed against the American dollar. The AUD/USD reached 0.9300 while the USD/CAD tumbled below 1.1000, weakened also by the Canadian employment report, that surpassed expectations: the economy created 42,900 jobs vs 20,000 expected while the unemployment rate fell from 7% to 6.9%. The Loonie lost momentum later with the Ivey PMI of March.
European currencies finished lower versus the US dollar but far from the lows, ending Friday at the same price they had before NFP. The EUR/USD found support around 1.3680 and bounced back to the 1.3700 area. “So, thanks to the ECB and a rumored study on how a 1T Euros QE may result, the EUR/USD posts its third week in a row of losses. The damage is contained due to US NFP data missing by little the too high expectations market players had”, said Valeria Bednarik, Chief Analyst at FXStreet.
The report from a German news agency that the ECB modeled a quantitative easing program pushed the Euro slightly lower and send 10-year borrowing costs for Italy to the a record low.
Against the Swiss Franc, Greenback rose for the third day in a row and finished above 0.8900 while the GBP/USD fell for the fourth day and ended below 1.6600.
Gold was on the move on Friday with a strong rally. The price of the ounce rose $20 and climbed back above $1,300, having the best day in almost a month. Crude oil in the US also rose and recovered the $100 level.
Main headlines in the US
Wall Street declines hard on Friday; Nasdaq turns negative in the year
Loonie surges against the dollar after labour market data
Gold takes off to the moon
Canada: Employment increases 42.9K in March
US: Nonfarm payrolls grow 192K in March
Stocks in the US opened in positive territory after the Bureau of Labor Statistics released the employment report: the economy created 192.000 jobs in March, slightly below expectations. But share prices started to pullback and then dropped sharply, sending the NASDAQ to -2%. The Japanese currency gained on risk aversion and on falling US Treasury yields.
The USD/JPY lost 70 pips, making an important reversal from above 104.00 and closed at daily lows at 103.20. Yen crosses finished the week with a strong reversal that could anticipated more corrections ahead.
Commodity currencies, lead by the Australian dollar rocketed against the American dollar. The AUD/USD reached 0.9300 while the USD/CAD tumbled below 1.1000, weakened also by the Canadian employment report, that surpassed expectations: the economy created 42,900 jobs vs 20,000 expected while the unemployment rate fell from 7% to 6.9%. The Loonie lost momentum later with the Ivey PMI of March.
European currencies finished lower versus the US dollar but far from the lows, ending Friday at the same price they had before NFP. The EUR/USD found support around 1.3680 and bounced back to the 1.3700 area. “So, thanks to the ECB and a rumored study on how a 1T Euros QE may result, the EUR/USD posts its third week in a row of losses. The damage is contained due to US NFP data missing by little the too high expectations market players had”, said Valeria Bednarik, Chief Analyst at FXStreet.
The report from a German news agency that the ECB modeled a quantitative easing program pushed the Euro slightly lower and send 10-year borrowing costs for Italy to the a record low.
Against the Swiss Franc, Greenback rose for the third day in a row and finished above 0.8900 while the GBP/USD fell for the fourth day and ended below 1.6600.
Gold was on the move on Friday with a strong rally. The price of the ounce rose $20 and climbed back above $1,300, having the best day in almost a month. Crude oil in the US also rose and recovered the $100 level.
Main headlines in the US
Wall Street declines hard on Friday; Nasdaq turns negative in the year
Loonie surges against the dollar after labour market data
Gold takes off to the moon
Canada: Employment increases 42.9K in March
US: Nonfarm payrolls grow 192K in March