“The air is blowing with off-beating correlation in between the value of USD and demand of stocks in the market all this because of favorable news from the labor market.”
Online PR News – 11-December-2009 – – “The air is blowing with off-beating correlation in between the value of USD and demand of stocks in the market all this because of favorable news from the labor market.”
On Friday, USD is trading higher on the announcement of the relaxed figure from the US labor market. The US Non-farm Payroll dropped in November by 11k that was better than the expectation.
The treasury bonds, commodity prices and the prices of gold that surged up suddenly fell down. US stocks and USD took a very rapid initial move but finally the drooping commodity prices and the increasing interest rates put the equities under big pressure.
S&P ended close to the high value up to 6.06 to 1,105.98 whereas JPY lingered. The favorable report from the US employment claims ratio and the increment in the US interest rates possibly return the position of the JPY in the market as the funding currency.
EUR dropped and touched the break point to around long-turn upward trend but closed at the level of 1.48. GBP also dropped down but the fall was limited by UK government announcement of reducing the budget deficit.
CHF recorded dropped from its uptrend moving trading indicator and CAD, on the same hand showed little better position at the market because of the better than the expected figures of the Canada’s employment.
AUD that is heading towards up trend since long term but finally fell from the support level. USD index rushed and stock gained modestly. USD index inversely correlated to the stock trade market. The breakdown in the corresponding relation in between the USD easily visualized.
Overall, the weekend came and people are relaxing with some good news and some bad news from different walks of world related to the currency trade position at the Forex market. The USD will continue to remain at its strong position in the market until equities trade does not undergo through predictable fluctuation.