The market has found in the better than expected non-farm payroll of November which came at just -11k while the market was waiting for 140k of losing jobs a reference to a nearer coming Fed's tightening action than what was pricing as the Fed's governors have repeated it several time that there is no change of the Fed's easing policy without a crucial change in the labor market which gave a strength to the greenback in spite of the rising of the US stocks after the data which triggered the investors' optimism to take risk driving Dow above 10500 before slipping to close the session up by just 22 points at 10388 on these increasing speculations that there can be a closer end of the fed's current quantitive easing steps which surely have helped the equities markets to take back a lot of what they have lost after the credit crisis. So, the Japanese yen was the most hurt currency after these data instead of the greenback this time as it carried the investors' carried trades this time as the greenback interest rate outlook has improved after the data. USD JPY closed the week well above 90 psychological level and in spite of the European currencies losing versus the greenback they could make new highs of the week versus the Japanese yen EURJPY close the week at 134.34, GBPUSD at 148.82 and CHFJPY at 89
The greenback could find a stronger ability to put pressure on the oil prices pushing the crude oil to close below 76$ and the gold as well The gold to lose more than 50$ after the data as the Fed's tightening can cap the inflation pressure upside risks from another side which can have further attention from the Fed in the future which can underpin the greenback by the fed's Next meeting next week.
God Willing, it is important to listen to Ben Bernenke language today after these optimistic labor data of November but there is no key important data from US this week to follow but the US trade balance of October which is waited to be -36.7B$ from -36.47B$ next Thursday and by the end of the week, we have the release of US November retail sales which are expected to be up monthly by .6% and by .4% excluding the auto sales and we have also next Friday the preliminary release if US UN Michigan University consuming sentiment survey of December which is forecasted to be 68.5 from 67.4 in November.
Best wishes
FX Consultant Walid Salah El Din E-Mail: snipped-for-privacy@fx-recommends.com