David Long

US Jobs Data Much Weaker – Forex Trading News – Sept 3rd 2014

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Forex Market News

US jobs data was much weaker than expected so the reaction was a weaker US dollar. Why? Well its because Aunty Janet and her cronies at the US Fed are watching the jobs market in order to see when it is best to raise rates. This is widely expected in June next year, if jobs data continues to show signs of improving economy. However weakness in that sector would push the rate hike out further in the calendar. So, investors pull cash from US bond (interest rates) market (this in turn weakens the currency) and look for higher yield elsewhere.

The Scottish bid for freedom heats up and latest poll suggests they will get it. This will put the pound into tailspin.

Europe is still a quagmire with no sign of growth anywhere in its zone as is Japan. Both economic blocs are talking up stimulus and more of it.

China is still puttering along whilst out here in the antipodes the Kiwi is off the boil and the Aussie is stagnant with little action to drive price out of its range.

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