The USD lost ground to the EUR again on Friday as the jobless data from the U.S. showed that not all is well with the American economy. The Non Farm Employment Change numbers came in with a disappointing result of minus -131k nearly doubling the estimated loss of minus -63k. Equally disturbing for investors will be the downward revision from the previous month, which now appears to have been minus – 221k. These numbers were enough to put a scare into Wall Street which promptly turned south and produced a decline before going into the weekend.
Today will be a quiet day of data from the States, but tomorrow the Fed’s FOMC Statement will be released. The crucial point for investors is how the government will handle this latest round of rather lackluster statistics for the U.S. economy. Politicians quickly got into the act depending on their political affiliation on Friday as some called for further stimulus measures. Thus, the FOMC Statement from the Fed tomorrow will be looked at for signs of more quantitative easing. And the answer as to what will occur is anybody’s guess. Tentative trading has followed equity markets in the States for a while now and although some gains have been seen they have been accomplished in an unconvincing manner. Investors have been extremely tentative the past few months and because of Friday’s rather poor results from the jobless numbers this is likely to continue. The USD appears to be taking the brunt of divergent risk appetite for the moment.
Written by bforex.com