The Dollar made significant gains against the Euro in the US trading session today after given a boost by positive employment data. After the US Department of Labour report helped dampen concerns by investors over the condition of the world’s largest economy, the greenback jumped even further. Non-farm payrolls rose the most in 11 months giving reassurance that the US economy is on the right track to recovery. The Euro on the other hand was hurt badly since ECB’s dovish speech on Thursday, and then in late US trading a rumour was leaked that Greece was considering leaving the Euro. This made the EURUSD pair plummet to a new two-week low of 1.4314, far below from the opening of the session at 1.4533.
The Pound began its decline from the New York open despite making some gains against the greenback in the earlier session. That was probably a brief correction since the Cable has been on the downtrend since news that the Bank of England will not be raising rates soon. The pair has basically been trading sideways since yesterday, within a range, remaining above the main support level of 1.6355.
Canada’s dollar jumped against the U.S. currency on Friday, reversing its recent downtrend after jobs reports from both within Canada as well as on the other side of the border in the US were way past expectations to report a huge improvement . The Loonie has until today been declining for the past five days following massive selloffs on the back of plunging commodity prices. The currency has a tight correlation with commodity prices, especially with oil and gold. By 16:30GMT in the later US session, USDCAD moved up again close to the European session high, to hit 0.9700, allowing the greenback to erase losses. But the pair was trading very volatile since then, heading back down with a few corrections in between, permitting entering short positions on the small retracements. Crude oil was also very volatile; basically CAD and oil were mirroring each other.
The Swiss franc has been losing strength since reaching record highs two days ago against the Dollar. As the greenback was boosted with today’s good employment news, it is overpowering most majors today, amid growing risk aversion. USDCHF spiked to a high of 0.8797 in the early session, closing not far off from it at 0.8774.
Gold prices rallied heavily during the US session, trading in a tight range. In early New York trading, spot Gold touched a low of $1,498.13, however moving much higher than yesterday’s US session close of $1,471.28, rebounding to hit a session high of $1,498.13. The US job creation data raised concerns that this will cause inflationary pressures and may prompt the US Fed to raise rates but there were mixed views on this since the Fed recently made it clear they will not change the current loose monetary policy. Hence, traders were mixed on how to trade Gold, as can be seen from the chart of the day, there were frequent small dips and rebounds.