U.S. Equity markets
erased earlier losses triggered by a weaker than expected U.S. Non-Farm
Payrolls Report. Traders were reacting to the fact that the U.S.
employment situation is still indicating a weak recovery. The markets
turned around, however, as investors saw the break as a buying
opportunity. As the Dollar fell, traders bought up stocks as demand for
higher risk assets picked up steam. Traders now feel that a hike in
interest rates by the Fed is a long way off and the best investment
opportunities are in the equity markets.
rallied following the release of the less than friendly U.S. jobs data
report. Traders are buying March Treasury Bonds and Notes on the
thought the Fed will continue to refrain from hiking rates for several
more months. Traders should watch for an acceleration to the upside in
March Treasury Bonds following a breakout over 116â€™05.
Gold is trading higher because of the weaker Dollar. Traders should
watch for an acceleration to the upside following a trade through
$1141.00. This move is likely to trigger a continuation of the rally
with $1151.30 the first major upside objective.
The weaker than
expected jobs data report is helping to limit upside movement in the
March Crude Oil. The stronger Dollar is helping to limit gains. Traders
also feel that a slowing economy will led to less demand for crude oil.
Technically, this market remains vulnerable to a retracement to 78.80.
U.S. Dollar broke sharply this morning following the release of a U.S.
Non-Farm Payrolls Report which showed the economy lost 85,000 jobs in
December. This bearish number surprised traders who were looking for
evidence that the U.S. economy stopped losing jobs in December.
on pre-report estimates, economists were looking for December Non-Farm
Payrolls to rise by 10,000. The unemployment rate was also expected to
rise to 10.1% from 10.0%. The actual report missed estimates badly
while the unemployment rate rose to 10%.
The ADP jobs data report
which came out earlier in the week showed that 84,000 were lost in the
private sector. Todayâ€™s report which includes both the private and
government sectors lost 85,000 jobs. This leads one to conclude that
either the government has to start hiring, or it has to begin spending
more money to create jobs in the private sector.
The March Euro
rallied higher following the U.S. jobs data report. This came after an
early morning report showed that the Euro Zone unemployment rate
reached 10% in November. Regaining of the retracement zone at 1.4350 to
1.4319 is a sign of strength. Upside momentum could be building which
sends the Euro back to 1.4680 - 1.4799 over the near-term.
March British Pound surged to the upside after regaining a key 50%
price level at 1.6036. Holding this number is an indication of higher
prices but the key retracement number to watch is 1.5988. This is an
uptrending Gann angle. Uncertainty over the upcoming general election
is most likely limiting todayâ€™s upside potential. Traders remain
concerned about the budget deficit and other fiscal issues.
that the U.S. economic jobs picture is not indicating an improving
economy helped strengthen the March Japanese Yen. This news is likely
to slow down the downside momentum, but not the down trend.
Technically, the March Japanese Yen regained a key 50% number at
1.0825. Closing back over 1.0818 will be the first sign of real buying
pressure. A closing price reversal bottom today could start a rally
back to 1.1223 - 1.1351.
The weaker Dollar is helping to
underpin the Swiss Franc. Based on the short-term range of 1.0090 to
.9522, traders should look for a minimum retracement to .9806 - .9873.
At the mid-session the lower end of this retracement zone is holding as
resistance, watch for an acceleration to the upside once this price is
The March Canadian Dollar resumed the uptrend
following the bearish U.S. jobs data report. The current chart pattern
suggests that the next upside target is .9740. Stronger gold and crude
oil prices are helping to underpin the market. Upside momentum could
slow if the Bank of Canada starts to talk about the need for a weaker