The Bounce & Week End Profit Taking - I have to cut in short today, I'm off seeing clients. Take this day as an opportunity to sell the USD into its rally. The USD is up due to the better than expected employment numbers. The U.S. economy added 151,000 jobs in October, exceeding expectations for a 60,000 rise, which is the fastest pace of hiring since April 2010. With the U.S. economy improving slowly and the additional liquidity being pumped in by the Fed's QE 2.0 program plays right into the risk on trade, so expect the USD to continue to fall as equities and commodities continue to rise in the weeks and months ahead. In Europe, the Euro is being dragged down anyway by sovereign risks concern with Ireland, Greece, Portugal, and Spain. Combine these concerns with a surprise drop in German manufacturing orders and you get a weaker Euro - change in trend, no, but an opportunity to get short the USD again. In Asia, the USD was up against the Yen even though we saw no further easing from the Bank of Japan after it concluded its policy review. In Canada, the CAD initially fell after Canada's economy only added 3,000 jobs in October, a fifth of what was expected. The CAD later recovered its losses and made a stab for parity after the release of the U.S. jobs data.
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