Friday October 8, 2010 - 13:55:03 GMT
Share This Story
Forex Hound - www.forexhound.com
Jobs Data Friendly to Treasury Bonds, Bearish for Dollar
Non-Farm Payrolls were down 95,000. The jobless rate was unchanged at 9.6%. The
government lost 159,000 jobs. This number was split between Fed census workers
and state workers. The private sector gained 64,000 jobs which was right in
line with expectations. The bottom line is the jobs market is not keeping pace
with growth in the economy.
December Treasury Bonds are hugging a downtrending Gann
angle at 134â€™19 today. This angle is likely to control the direction of the
market today. Todayâ€™s jobs number is not expected to be bearish for Treasuries,
but gains could be labored since it appears the market has built in the Fedâ€™s
quantitative easing package.
Debt markets continue to indicate that the economy is in bad
shape. Yields are likely to hit record lows today. This is a strong indication
that the pace of the economy will continue to slow.
Stock futures indices are falling, but this could be the
initial reaction to the number. After all, the jobs picture looks bleak which
is not a good sign for the economy. On the other hand, investors have been
buying dips in expectation of more liquidity from the Fed.
The equity markets should continue to be the most difficult
to assess because the rallies havenâ€™t made any sense given the state of the
economy and are only providing that liquidity drives the market, not the
The Dollar is expected to continue to erode in value because
the non-farm payrolls report said nothing that will take quantitative easing
off the table. As long as the Fed continues to move toward easing and the
European Central Bank moves toward exiting its emergency plan, the Euro should
be a big gainer.
Now that the U.S.
government has released its September jobs data, traders will shift there focus
to the size of the Federal Reserveâ€™s quantitative easing package and how they
are going to do it. There are arguments floating around which call for the Fed
to use the â€śshock and aweâ€ť approach. This means hitting the market with a huge
amount of liquidity. Others feel the best approach is to announce a big number
but spread it out over time.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."