Dollar’s Reaction to Payrolls Should Last
April 2, 2010
The dollar surged after the non-farm payrolls report because job growth excluding census workers was very strong.
With the absence of U.S. equity traders, we did not see the risk rally that tends to occur near the U.S. equity market open. Based upon how the dollar traded after the NFP report in April 2007, there is good chance that the current trend in the dollar will last. Volatility should settle by the London close and the move that we see today should continue on Monday.
The following chart shows how the EUR/USD performed on April 6, 2007 and how the move continued the following Monday. For a chart on how the EUR/USD traded on NFP day on April 6, 2007, read my prior NFP post.
More on this topic
(What's this?)
U.S. jobs growth lags historical pace
(Investment Postcards from Cape Town, 1/7/12)
US Non-Farm Payrolls Set to Generate Heavy Volatility
(Jutia Group, 2/2/12)
EURUSD Hits New Lows Ahead Of Non-Farm Payrolls
(Jutia Group, 1/6/12)
Posted in eur/usd, non-farm payrolls
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April 4th, 2010 at 3:06 am
Dear Kathy
I love you so much and your blog is amazing
Regards
April 4th, 2010 at 3:07 am
[...] Kathy Lien compares the EUR/USD reaction to a similar release in the past, and sees further dollar strength. [...]
April 4th, 2010 at 10:37 am
[...] Kathy Lien compares the EUR/USD reaction to a similar release in the past, and sees further dollar strength. [...]
April 4th, 2010 at 10:37 am
[...] Kathy Lien compares the EUR/USD reaction to a similar release in the past, and sees further dollar strength. [...]
April 4th, 2010 at 8:27 pm
You sure about this Kathy as I see minor accumulation going on…
>>A flight to quality pushed the euro to a 10 month low against the U.S. dollar and now there is no major support in the EUR/USD until 1.30.
It bounced of 1.3265, hopefully it goes to 1.30 as you mentioned
Walter.
April 4th, 2010 at 9:45 pm
I think: JPY future was on the rise
April 6th, 2010 at 12:54 am
[...] Kathy Lien compares the EUR/USD reaction to a similar release in the past, and sees further dollar strength. [...]