Monday June 6, 2005 - 04:35:24 GMT
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Tricom Futures and Foreign Exchange -
Forex: Who's economy's sicker - Europe or US
The dollar rose against the euro on Friday as sentiment continued to reward higher U.S. interest rates and relatively positive growth prospects over political instability and economic torpor in the euro zone. Sentiment for the euro remained so poor that the dollar shrugged off a weak U.S. jobs report that showed payrolls grew by 78,000 in May, much lower than economists forecasts for a rise of 185,000. The jobless rate improved to 5.1 percent, compared with forecasts for 5.2 percent.
U.S. markets closed the week on a mixed note Friday, as stocks and bonds reacted badly to economic news, while the dollar managed to stay ahead of its rivals and gold and oil made solid gains.
The Dow Jones Industrial index closed down after sharply weaker-than-expected May job growth sparked fears of an economic slowdown and oil surged to hit $55 a barrel.
Before the market opened, the Labour Department said only 78,000 jobs were added to U.S. non-farm payrolls in May, the weakest job growth since August 2003 and less than half what economists had forecast.
The monthly employment figures are closely watched because a weak or stagnant job market tends to curtail consumer spending, the main driver of the U.S. economy.
Today’s Top Trades
· Buy USD/CHF on dips to 1.2480-90, with stops under 1.2450
. Sell GBP/JPY around 195.60
. Buy AUD/NZD around 1.0780-85
For more ideas send me an email, Abdul.Khan@tricom.com.au
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