Good day Koalas. Easter greetings to you!
TODAY IS CASH THE PIPS FOR BEER DAY! yay 🙂
Yesterday, i spoke of the possibility of trouble brewing again over at the Euro Zone. Greece bond yields have increased, indicating that the market is demanding more of a premium to hold her debts. This suggests that investors are not having much confidence in the Greece deficit issue.
With the US Non Farm Payroll report announced moments ago, let us take a look at the EUR/USD.
The currency pairs dropped sharply in response to the US NFP. It is currently above a trend line that i have drawn and extended from 25 March 10.
Although the S&P 500 is currently closed, the index’s momentum indicates a bullish outlook. 1200 seems to be within reach.
Gold is currently trading at $1120.
The US Non Farm Payroll fell short of estimates. Nonetheless, this is the biggest gain of jobs in 3 years and investors welcomed the good news. The resulting knee jerk price action saw the EUR/USD slicing through the chart, in favor of the US Dollar.
Having said so, there are a couple of points we need to consider.
Firstly, the march increase included 48,000 temporary workers hired by the US government to assist in the 2010 census.When this exercise is over, these workers will once again join the ranks of the unemployed.
Secondly, the unemployment rate remains at 9.7%. The US unemployment crisis is a critical issue and the effects of a high unemployment rate is manifesting everywhere. A poor performing US home sales market is an example.
Bullish relief may see the EUR/USD back at 1.3550.
Continued bearish reactions may target 1.3455.
Am excited about the weekend! I am thinking of doing something for koalas who are totally new to forex trading. Something like a series of articles on what forex trading is all about. Learning forex the right way is definitely important!
What do you think? Trade safely!