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As mentioned in my NFP previews, the low expectations were in favor of the dollar, but not all against all currencies – Euro, Pound, Swissy and Yen weaken, while the Aussie and loonie beat the dollar. This NFP is different:

Non-Farm Payrolls came out a little bit better than expected: they showed a loss of 36,000 jobs, better than about 50,000 that was expected. Last month’s number was revised to a loss of 26,000, an insignificant change from the loss of 20,000 initially reported.

A small positive surprise was also seen in the Unemployment Rate which remained at 9.7% and didn’t rise back up to 9.8% as expected. Let’s see the reaction:

Forex reaction – Pound going under 1.50

EUR/USD fell from 1.3580 to 1.3530 after the release. This 50 pips instant drop is a good reflection of the slightly better results. The most important support line for EUR/USD is 1.3423, and that’s still far away. EUR/USD recovered afterwards, but remained lower than

GBP/USD is also vulnerable to good American figures and it fell from 1.5040 to 1.4995, just below the round psychological number of 1.50. The important bottom line for the Pound is at 1.4780. This is a historic support line and also this week’s bottom – GBP/USD bounced off this line after the big collapse. GBP/USD recovered later.

USD/CHF and USD/JPY are on the rise – the US dollar gains ground against these majors. But the picture is different in the commodity currencies:

AUD/USD rises from 0.9010 to 0.9060, getting ready to attack the 0.90 resistance line that it failed to breach earlier this week.

Also the Canadian dollar is beating the US dollar – USD/CAD fell from 1.0320 to 1.0270. It went as low as 1.0269 earlier this week, and the most important support line is at 1.02 – the 2009 low.

– Post still being updated –

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