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The market are reacting USD negative, EUR positive at the moment as EUR has risen from pre announcement level of 1.2715 to 1.2735.

The main question now is how Chairman Bernanke reacts to this announcement. Is he disappointed by the NFP number or happy about the unemployment number. This will go a long way as to what happens next week at the FOMC meeting.

Guest post by  Matthew Lifson, Foreign Exchange Trader,  Market Analyst of  Cambridge Mercantile Group.

I was just on the phone with a reporter from Thomson Reuters and I stated that the administration will be pleased with the reduction of the unemployment rate and I will go on record that I do not believe there will be any additional easing announced next week.

As far as the two main announcements this week are concerned, the EUR “wins”. The ECB announcement has easily trumped the NFP release and that should keep the market “EUR positive” over the next few trading sessions.

Technical view:  EUR/USD Breaks resistance, highest since May