Saturday, 5 January 2013

Nonfarm payrolls price action disappoints



Nonfarm payrolls data failed to create significant price action moves in most currency pairs. In fact, Friday was very calm in Forex market. Only scalpers could have benefited from the event. Other than that it was a pretty boring day. It is quite unusual for Fridays that often have huge market swings in most currency pairs and sharp reversals after weekly moves. 

However, it does not mean the piece of news will not have impact at all. Reactions often come after a day or in the beginning of a new week. The data that came out was slightly below market expectations, but it was still quite good. So, we have yet to see how big market dogs decide to push various currency pairs on Monday. 

I keep to my position that Euro will collapse soon and I think the move down has already started. Important support level has been broken. We do need some announcement from ECB or FED for the fall to accelerate and I guess it should come this month. It could be done during the announcement when interest rates are announced. I think it will be ECB head who will make a bearish stance against Euro.
Let us wait and see what happens this week. See you soon.

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