FX.co ★ Fundamental Forex market review for Jan 8

The US dollar is earning positions against most of the world currencies. Yesterday, the EUR/USD pair closed at 1.4304, the GBP/USD at 1.5925, the USD/JPY at 93.59, the USD/CHF at 1.0348. The highest level of the day was 1.4445. The lowest mark was 1.4298. The speculations of independent ratings lowering are affecting the euro. Today, most of the market participants are preparing for the US Labor Department reports. The expected decline of payrolls is 10K, but some economists suppose that the indicator can demonstrate a growth that will support the greenback a lot. Investors believe that the positive labor market data will strengthen a good reaction of the American currency to the macroeconomic figures dynamics. However, we should not be hasty in such bright forecasts. Not only the real figure of non-farm payrolls will be quite important for us but also the previous value, which set the start of the current upward US dollar trend. In my opinion, the revised previous value of non-farm payrolls can be very interesting. Looking back, the Labor Department of the USA often revises value of already released rates of this indicator and usually figures differ from each other in times. The positive reading of this indicator will be important step enough for the US dollar as will show that the positive statistics, observed recently is a sign of the economy recovery. Also, it should to pay attention to another statistics indicators of the labor market. It is expected that the unemployment rate will remain unchanged and will be 10%. Thus, the labor market favorable statistics will enhance speculations regarding that the FRS is close to the low interest rates policy ending on the back of further improvement of the economic situation.

Analyst: N. Grigorjeva