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6 Sep 2013
Session Recap: USD declines as Non Farm payrolls don't answer the 'ultimate' Fed question
FXstreet.com (San Francisco) - The Greenback was the loser of the day as the employment report showed a weaker than expected non farm payrolls number and despite the unemployment rate declined on August, the participation rate left a shroud of doubt, specially about the Fed's plan to start tapering in September.
"Is the data enough to start tapering as soon as this month?" FXstreet.com Chief Analyst Valeria Bednarik asked in a recent report. She answered that "actually no, but experts believe the FED will tapper anyway, and the question is no longer when, but for how much."
Now consensus is about a $10 Bn cut in the Fed's bond buying program. However, as Bednarik says, "it won’t be enough to shock markets, as is already priced in."
So, the employment market shocked the market and then the Syrian conflict fueled the risk aversion. Investors were also concerned on the Syrian problem as Russian President V.Putin added to the increasing uncertainty surrounding the region after saying Russia will support Syria in case of any attack and Barack Obama affirmed that the US is able to attack today, tomorrow or next month. Oil rose and stocks declined.
Meanwhile, the EUR/USD recovered almost all the post-ECB losses with the pair rising from 1.3104 to trade at 1.3190. The GBP/USD jumped to 1.5680, highest since August 21, and it closed at 1.5627. The USD/JPY collapsed from prices above the 10.00 key area and closed at 99.00.
The AUD/USD recovered all Thursday's losses and posted new September highs around 0.9215. The crude oil rallied 1.67% on the day at 101.18. The Oil jumped 2.35% or $2.53 in the last 5 days. The gold advanced 1.19% on the day to end the week at 1,389.40.
Main headlines in the American session
US: Nonfarm payrolls up 169K in August
US August Unemployment Rate improves to 7.3% vs 7.4% (July)
UK: NIESR GDP up 0.9% in August
Putin says Russia will aid Syria if strikes launched
Fed’s George favors $15 billion taper
Metals rebound on Russia’s comment and post NFP data
Hilsenrath calls Fed decision a ‘cliffhanger’ in latest WSJ article
Syria weighs and Wall Street closed mixed after fading highs
"Is the data enough to start tapering as soon as this month?" FXstreet.com Chief Analyst Valeria Bednarik asked in a recent report. She answered that "actually no, but experts believe the FED will tapper anyway, and the question is no longer when, but for how much."
Now consensus is about a $10 Bn cut in the Fed's bond buying program. However, as Bednarik says, "it won’t be enough to shock markets, as is already priced in."
So, the employment market shocked the market and then the Syrian conflict fueled the risk aversion. Investors were also concerned on the Syrian problem as Russian President V.Putin added to the increasing uncertainty surrounding the region after saying Russia will support Syria in case of any attack and Barack Obama affirmed that the US is able to attack today, tomorrow or next month. Oil rose and stocks declined.
Meanwhile, the EUR/USD recovered almost all the post-ECB losses with the pair rising from 1.3104 to trade at 1.3190. The GBP/USD jumped to 1.5680, highest since August 21, and it closed at 1.5627. The USD/JPY collapsed from prices above the 10.00 key area and closed at 99.00.
The AUD/USD recovered all Thursday's losses and posted new September highs around 0.9215. The crude oil rallied 1.67% on the day at 101.18. The Oil jumped 2.35% or $2.53 in the last 5 days. The gold advanced 1.19% on the day to end the week at 1,389.40.
Main headlines in the American session
US: Nonfarm payrolls up 169K in August
US August Unemployment Rate improves to 7.3% vs 7.4% (July)
UK: NIESR GDP up 0.9% in August
Putin says Russia will aid Syria if strikes launched
Fed’s George favors $15 billion taper
Metals rebound on Russia’s comment and post NFP data
Hilsenrath calls Fed decision a ‘cliffhanger’ in latest WSJ article
Syria weighs and Wall Street closed mixed after fading highs