EUR/USD plunges after the superb US Non-Farm Payrolls. The lower chances of QE3 in the US send the dollar higher against the majors, including against the yen, which sometimes acts differently. Yet with commodity currencies the story is totally different, with gains seen in AUD, CAD and NZD. The US gained 243K jobs in January, and enjoyed upwards revisions. The unemployment rate fell from 8.5% to 8.3%. This wasn’t expected. The most amazing thing is that the US labor force actually grew during the month by 250K. QE3 is dependent on high unemployment and low inflation. Unemployment continues to improve, and at a better pace. The chances of more dollar printing and debasing are now significantly lower. Two sets of currencies After a usual choppy reaction, the dollar began surging. EUR/USD dropped to a lower range: 1.3060 to 1.3145, and currently trades at around 1.3120. The move is far from over, and the European troubles could exacerbate the situation. GBP/USD lost the 1.58 line. USD/JPY finally emerged from the abyss, bouncing off 76 and challenging the almighty 76.60 line. USD/CHF is challenging 0.92. Commodity currencies are totally different: USD/CAD is now falling to around parity, despite weak Canadian job figures. A strong US is good for Canada. No doubt. AUD/USD is moving to higher ground around 1.0750. NZD/USD is resuming its attack on 0.8340. Explanations Commodity currencies are enjoying risk appetite as they expect stronger global growth and are well positioned for that. Majors are worse off: economies are stuck. The fuel for their gains against the greenback was QE3. With less chances of this happening, they fall. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next EUR/AUD Plunges to All Time Low on Non-Farm Payrolls Yohay Elam 11 years EUR/USD plunges after the superb US Non-Farm Payrolls. The lower chances of QE3 in the US send the dollar higher against the majors, including against the yen, which sometimes acts differently. Yet with commodity currencies the story is totally different, with gains seen in AUD, CAD and NZD. The US gained 243K jobs in January, and enjoyed upwards revisions. The unemployment rate fell from 8.5% to 8.3%. This wasn't expected. The most amazing thing is that the US labor force actually grew during the month by 250K. QE3 is dependent on high unemployment and low inflation. Unemployment continues to improve,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
