On Friday 10-02-09 at 8:30 AM ET, the Bureau of Labor Statistics released the monthly reports of the USD Non-Farm Employment Change and Unemployment Rate.
These was released along with 4 other economic reports:
USD Change in Manufacturing Payrolls
USD Average Hourly Earnings (MoM)
USD Average Hourly Earnings (YoY)
USD Average Weekly Hours
I am not sure how these additional reports affected the currency market.
Here is how the reports were set up for this month and the results:
USD Non-Farm Employment Change – Stats
Previous = -216K revision = -201K
Forecast = -186K revision = -179K
Actual = 263K
Bad – lower than “forecast” by 77K, lower than “previous” by 47K and lower than “previous” revised by 62K.
USD Unemployment Rate – Stats
Previous = 9.7%
Forecast = 9.8%
Actual = 9.8%
Bad – even though the “actual” came out as “forecast”, the Unemployment Rate did increase
It appears that all of the USD economic reports released at this time are negative for the USD – even the additional 4 reports mentioned above.
Three of the USD involved currency pairs I watch, EUR/USD, GBP/USD and USD/CAD, showed reactions opposite to what one would expect the first 5 to 7 minutes, an exception is the fourth currency pair USD/JPY.
Even the two “cross” currency pairs moved in the opposite direction the first 9 minutes.
Here are the charts:
a one minute EUR/USD chart
This EUR/USD currency pair moved down in favor of the USD for 5 minutes about 61 PIPS – only then did it change direction against the USD for the next 50 minutes about 86 PIPS.
a one minute GBP/USD chart
This GBP/USD currency pair moved down in favor of the USD for 5 minutes about 54 PIPS – only then did it change direction against the USD for the next 49 minutes about 91 PIPS.
a one minute USD/CAD chart
This USD/CAD currency pair moved up in favor of the USD for 7 minutes about 51 PIPS – only then did it change direction against the USD for the next 13 minutes about 74 PIPS.
a one minute USD/JPY chart
This USD/JPY currency pair spiked down the 1st minute about 52 PIPS against the USD, retraced that 1st minute about 32 PIPS in favor of the USD – only then did it change direction against the USD for the next 53 minutes about 39 PIPS against the USD.
Crosses:
a one minute EUR/JPY chart
This EUR/JPY currency pair moved down, not as expected for 9 minutes about 100 PIPS – it then reversed and moved in what I considered a favored direction for about 50 PIPS.
a one minute GBP/JPY chart
This GBP/JPY currency pair moved down, not as expected for 9 minutes about 108 PIPS – it then reversed and moved in what I considered a favored direction for about 50 PIPS and then ranged.
I had been set up to trade the currency pair EUR/JPY, but did not enter a trade.
The next scheduled release of the two major reports is for Friday, 11-06-09 at 9:30 AM ET.
I will probably post a “preview” a day or two prior.
Stay tuned!
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