14, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The main event of the last week’s last trading day brought a report on the U.S. labor market. Traditionally investors tracked the Non-Farm indicator very closely, because there is an empirical rule: the creation of 200 thousand jobs in the month leads to the increase of the GRP indicator on 3%. Leading indicators demonstrated a steady growth and it could count on a good report on employment in the non-agricultural sector. However the release on Non-Farm sprang a surprise on the whole financial community, having showed the minimum values from May 2011.

Yields on ten-year U.S. Treasury bonds immediately fell to the level 2.85%, that indicates the doubts of the market participants regarding the stimulus program QE3 reduction at the nearest January FOMC meeting. Against this background the pair Euro/dollar quotations soared up having showed the maximum week’s values. The United Kingdom continued to disappoint investors with its macroeconomic statistics. The report on industrial production for November was worse than the forecasts median that had led to decrease in quotations of the pair pound/dollar up to the 64th figure.

However investors reacted extremely emotionally to this release and after the publication of the data on a labor market rising quotes were in the States. In absence of vital statistics from Japan the participants of the trades on the USD/JPY pair focused on data on the U.S. labor market. The negative data on Non-Farm led to the sale of the dollar/yen pair and trading day closed near the 104th figure.