Thursday, January 12, 2012

Weekly Forex News Reports by

In the post I want to share nice article that I found on site.
Weekly Forex News Reports
US payrolls surprise on the upside but USD lacks momentum

Monday, 09 January 2012 13:10 GMT+2

The December NFP (non-farm payrolls) report was the first big data release of the New Year. The above consensus (+200) outcome and the associated fall in US unemployment to 8.5% are supporting the latest string of positive data coming from the US which are in sharp contrast to the recent gloomy data coming from the Euro zone. On Friday the strong US labour market data initially pushed EUR-USD towards 1.2725 until a wave of selling shortly before close of trade sent the currency pair to 1.2697 – the lowest level since September 2010.

Although the EUR/USD managed to post new lows following the news, the modest reaction of the pair is not a surprise and indicates that the extreme short positioning is not lending any momentum on the downside. In spite the fact that fundamentally EUR/USD remains a sell, we are starting to see signs of an imminent short term rally that will shake out some of the weak longs before the downtrend resumes its descend again. Continue reading...