The time is here again. Soon the markets will close for the weekend and this concludes another week of trading. I hope everyone is green for the week. I cannot help but nag again that proper money management is extremely important!
In the previous review, we noted positive sentiments riding on the FOMC Statement event. Investors are probably optimistic about the new quantitative easing actions. Equities did well. Should 1.42 remain unbroken, bullish momentum should be lurking around.
Looking at the EUR/USD chart above, the 1.42 line broke after having tested the 1.4260 region. The currency pair halted it's advance before the 1.4 region but however, profit taking of the long positions may exert some bearish pressure.
The S&P 500 continues to do good due to the FOMC Statement and the US Non-Farm Payroll. Investors sentiments probably remain positive.
The US Non-Farm Payroll clocked in higher than expected. Jobs were added to the economy and this sparked a relief that the employment market is starting to pick up. With the unemployment rate at 9.6%, any increase in jobs will probably ignite a quick reaction. Hence this may be why the EUR/USD is moving in favor of the US Dollar.
Having said so, the drop of the EUR/USD started before the US Non-Farm Payroll. With the Euro Zone Retail Sales and German Factory Orders coming in negative, investors were probably concerned about the European economy and sentiments fell.
Trade safely and i'll see you for the weekly review!
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