EUR/USD (a 4-hour chart)
The investors' attention was focused on the U.S. labor market report. The non-farm payrolls in March, almost coincided with the market expectations - the final figure was 192 thousand jobs. The data for February was revised upwards, but the unemployment rate remained unchanged at 6.7 %, instead of the reducing expectations to 6.6%. This report is uneven. On the one hand, the increase in employment by 192 thousand per month is a good result of an economic recovery; on the other hand, the overall unemployment rate is not reduced when the hourly wage average was reduced in March. In the lights of this the pair EUR/USD was hesitating, the traders could not choose the direction of the future movement.
There was the “bearish sentiment” in GBP/USD. The weak UK economic data together with a moderately positive data on employment in the United States supported the demand for the dollar. Nevertheless, the U.S. dollar strengthening was restrained, as the investors expected a much better report on the transatlantic labor market.
After 6 days of an upside trend in a row the investors decided to take profits on the long positions. To continue the uptrend it was necessary to obtain a strong report on the labor market in the United States - more than 200 thousand new jobs were created. However, such a strong numbers, market participants have not received in a toga and we watched a couple of sales in dollar/yen. However, this downward movement is just a technical correction, and we will soon be watching the sequel to the “bullish” trend.