Report of the US Change in Nonfarm Payrolls
Last Friday, July 5th, USD experienced strong gains after the optimistic US labor numbers. However, this is the third week now since USD opened weakly against other major Forex pairs.
This is contradiction to the positive figures displayed from the report of the US Change in Nonfarm Payrolls in which there were over 195,000 openings in jobs in June.
Many of the trading markets are reversing the gains obtained last Friday and the most apparent is in bonds. The 10 year yield analysis on the US treasury was expected to increase to 2.700% except that it is down -2.88% (or 7.9bps) to 2.660% today at 4:20 PM GMT.
The trend in bonds is making the online Forex trading markets follow suit. First, the dollar index of the Dow Jones Forex Capital Markets (FXCM) has fallen -40 to $10956 at the same mentioned time. Although the Dollar Index was fairly strong after the Sunday Open, it declined shortly after.
Today marks the third straight week in which the Dollar Index opened lower. It is to note that this day is actually the first day right after the holiday weekend in the United States. Still, it is evident that the FX markets have been trading a little bit lighter than expected. According to online FX experts, the volatility prices of the market have begun the week sharply lower particularly at the front end. It is anticipated that this will lead to a much quieter exchange.
When it comes to commodities, base metals remain falling sharply whereas crude oil is generally flat. Shanghai Copper is down -1.50%, COMEX Copper is up +1.03%, and Brent is down -.10%. Finally, equity markets appear to be strong at the moment with Europe as the leader of the pack. Euro Stoxx is up +2.09% but Hang Seng is down -1.31% at 4:20 PM GMT today.
