The EUR/USD reacted quite unexpectedly to the disappointing Non-farm payrolls. The price first jumped up as expected and within 10 minutes started to range. If we look back to Thursday we could speculate that the result was priced in once the pre- Non-farm payrolls data came out causing the price to jump by about 140 pips within 40 minutes. Today the European session started with a bullish mood and the pair is moving up slightly. Due to the fact that there are no important economic events today we might see a price correction later as well as lower volatility.
On Friday the GBP/USD pair erased its drop from Monday which was caused by the disappointing U.K. Manufacturing PMI data and climbed back to 1.6420. The actual release of Friday’s Non-farm payrolls affected this pair more than the EUR/USD pair because the GBP/USD did not price in speculation before. Today, the sentiment slightly changed and is ranging around the 1.6400 level. Today we should not expect higher volatility as no important economic events are coming out.
The USD/JPY pair moved up to a weekly high as the new week started despite negative figures from Friday’s Non-farm payrolls. The pair is being driven mainly by the Yen which, as a safe-haven asset, slightly weakened due to the economic release of the Current Account at 11.50PM on Sunday. The Current Account deficit is at a record but still lower than analysts expected. The pair will reflect the U.S. testimony which will be announced on Tuesday and Thursday. The sentiment is slightly bullish.
February 10, 2014 – Forex News
Hot asset for today: EUR/USD
The EUR/USD reacted quite unexpectedly to the disappointing Non-farm payrolls. The price first jumped up as expected and within 10 minutes started to range. If we look back to Thursday we could speculate that the result was priced in once the pre- Non-farm payrolls data came out causing the price to jump by about 140 pips within 40 minutes. Today the European session started with a bullish mood and the pair is moving up slightly. Due to the fact that there are no important economic events today we might see a price correction later as well as lower volatility.
On Friday the GBP/USD pair erased its drop from Monday which was caused by the disappointing U.K. Manufacturing PMI data and climbed back to 1.6420. The actual release of Friday’s Non-farm payrolls affected this pair more than the EUR/USD pair because the GBP/USD did not price in speculation before. Today, the sentiment slightly changed and is ranging around the 1.6400 level. Today we should not expect higher volatility as no important economic events are coming out.
The USD/JPY pair moved up to a weekly high as the new week started despite negative figures from Friday’s Non-farm payrolls. The pair is being driven mainly by the Yen which, as a safe-haven asset, slightly weakened due to the economic release of the Current Account at 11.50PM on Sunday. The Current Account deficit is at a record but still lower than analysts expected. The pair will reflect the U.S. testimony which will be announced on Tuesday and Thursday. The sentiment is slightly bullish.
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