FX.co ★ Fundamental Analysis For October 05 /2012

This day was special for financial markets. The jobs data from the United States for September and August will be announced at 8:30 Eastern and generate a strong impact on currency prices.
This time it is expected to show increase in employment compared to August while unemployment rate which was 8.1% should grow to 8.2%. What can happen amid such data? At first, we witnessed a sharp rise on Wall Street during Thursday. Data available on the eve was not encouraging, and there was no stimulus for the Dow Jones index, which is approaching again to the 4-year maximum right on the eve of crucial information to be known in minutes.
Currencies, led by the euro, followed the movement of shares, and the pound was not far behind. Both currencies managed to gain positions after the apathetic statements of the ECB President Draghi at the press conference that followed the announcement of monetary policy of the entity. The British pound felt no effect of the same announcement by the BoE, which otherwise offered no surprises.
The euro managed to fix at 1.30 again, while the pound is firm, but not in an uptrend as the single currency. However, the data to be known from America usually offers some "surprises" that can derail any shape to be formed on the short-term chart.
As usual, the recommendation is to wait for the trends on short-term charts before placing stable market positions. In several months of this year the euro ended the day amid jobs data at the same level it was before the report. And this situation has been repeated for years in the past. Why not this time?
Canada also has its own employment data and the unemployment rate, at the same time, the Canadian reality is different (significantly better than that of its neighbor) in the workplace, and its currency is reflected: the loonie is away from parity with the dollar, although it is true that it is affected by oil behavior.
Taking into account the American session and mentioned above reports, we could observe some stimuli or turnaround in the medium -term, which provides an intense day in the markets. And you'd better have patience and prudence to cope with it.