FOREXYARD: Forex News Blog

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Dollar Continues to Tumble against Main Currency Rivals Posted: 01 Feb 2012 08:36 AM PST The combination of better than expected euro-zone news and a poor US ADP Non-Farm Employment Change figure caused the USD to extend its bearish trend throughout the day today. The EUR/USD shot up well over 100 pips during the European trading session, and once again broke the 1.3200 level before staging a slight downward correction. Meanwhile the USD/JPY hit a fresh three-month low earlier in the day. Rumors began to circulate that the Bank of Japan would soon intervene in the market place after the pair dropped as low as 76.02 earlier in the day. Turning to tomorrow, a speech from Fed Chairman Bernanke is likely to generate significant market volatility. Following the last speech from the Fed Chairman the dollar took heavy losses against its main currency rivals. While it is not yet known what Bernanke will say, the dollar may fall further unless he is able to boost investor confidence in the US economic recovery. Traders will also want to remember that the all important US Non-Farm Payrolls figure is set to be released on Friday. The indicator is widely considered to be the most important news event on the economic calendar, and large shifts in the market place are guaranteed to occur. The USD may come under renewed pressure if the payrolls figure comes in below expectations.

Be Prepared! US Non-Farm Payrolls This Friday, February 3rd, 2012 Posted: 01 Feb 2012 08:34 AM PST At FOREXYARD we encourage our customers to be prepared for major market events. As such, you should know that the US Non-Farm Payrolls (NFP) is scheduled to be released on Friday at 13:30 GMT. The NFP is considered one of the most important economic indicators and typically results in major market volatility with the potential to effect currencies, commodities and CFD’s. Stay Informed! While many investors remain focused on the European debt crisis, the jobs report will likely be the highlight of the trading day. While the US economy has seen some setbacks in recent weeks, a positive jobs report on Friday is likely to boost investor confidence in the American economic recovery. Analysts are predicting that the US added 156K jobs in January. If the figure comes in at or above 156K, investors may decide to bet on riskier assets, like the EUR, GBP and crude oil. On the other hand, if the NFP figure comes in below 156K, investors may place their funds with safe haven assets, which may give currencies like the USD and JPY an opportunity to recoup some of their recent losses. Either way, forex traders can be sure that Friday will be an exceptional day in the markets.

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