The Top 5 Forex Developments 12/01/14 – 12/05/14 – Paxforex

Here are the Top 5 Forex Developments for the trading week between 12/01/14 and 12/05/14:

Number One: Non-farm Payrolls

US non-farm payrolls rose by 321,000 in November and the unemployment rate showed no change at 5.8%. Expectations called for an increase of 230,000 jobs and an unemployment rate of 5.8%. Change in household employment showed an increase of only 4,000 jobs against expectations for an increase of 320,000 jobs. The US Dollar did rally, but forex traders are advised to look at the NFP report with care.

Number Two: Canadian Employment Report

Canada’s labor market was expected to come to a standstill in November and show no job gains while the unemployment rate at 6.6%. Forex traders received another surprise, this time to the downside, as the Canadian economy shed 10,700 jobs as the unemployment rate showed no change at 6.6%. The Canadian Dollar sold-off after the report.

Number Three: European Central Bank

The European Central Bank left is interest rate unchanged at 0.05% while the marginal lending facility remained unchanged at 0.30% and deposit facility rate unchanged at -0.20%. Forex traders expected no change, but many are seeking more clarity about a potential stimulus which may be announced during the first-quarter of next year. The Euro sold-off after the press conference which followed the rate announcement.

Number Four: Bank of England

The Bank of England kept interest rates on hold at 0.50% while the Asset Purchase Target saw no change at £375 billion. The Bank of England has disappointed forex traders speculating on an increase in interest rates in 2014. This has pushed the British Pound higher until it became evident that no increase in interest rates will take place which initiated a sharp sell-off. The British Pound moved lower through the week.

Number Five: Eurozone Retail Sales

The Eurozone economy continues to slow down further than expected. Retail sales for October rose by 0.4% monthly and 1.4% as compared to last year. Expectations called for an increase of 0.5% and 1.6%. Fears about a recession in the Eurozone continue to grow and the Euro feels the negative impact of that. Forex traders bullish in the European currency have tried to create a new support level for the Euro which has held firm last week.

Written by Paxforex