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Jan US Labor report gave the Greenback short-lived rebound only

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 8, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    Jan US Labor report could give the Greenback short-lived rebound but it could not change the current market sentiment which is still dominated by the Chinese economic slowdown and financial turmoil which hit the markets this year with retreating of the oil prices.

    After its meeting on Jan. 27, FOMC said that it is assessing currently the global economic slowdown and the financial development implications for the labor market, the inflation, and for the balance of risks to the outlook.

    But Fed's vice president Stanley Fischer came last week to dampen the interest rate outlook saying that the Fed's next step is still unclear, as it is too difficult to gauge the impact on the U.S. economy from recent turmoil in financial markets and uncertainty over China.

    It looks to the markets meanwhile that this waiting and see stance of the Fed can be prolonged behind the first quarter of this year which is watching harsh winter like what has happened in 2014 and 2015 and caused GDP annual contraction.

    The US economy could get over the bad winter in the last 2 year but this time it is looking harder, after actual GDP declaration in US led it to grow by only 0.7% in Q4, after growth by 2% following expansion by 3.9% in the second quarter of last year.

    XAUUSD Daily 08-02-2016 12-05-25 م.jpg

    The gold was one of the most gainers from this sentiment to easily resume its rising surpassing $1163 which stopped it last Friday to cause forming only a new higher low at $1145.30 following the release of US Jan labor report which came mixed showing lower unemployment rate at 4.9% but with adding of only 151k of jobs out of the farming sector, while the market was waiting for 195k.

    EURUSD Daily 08-02-2016 11-25-53 ص.jpg

    After holding above 1.11, EURUSD could also resume its rising to be traded now near 1.1170 just above its hourly SMA50, after rising above its hourly SMA20.

    EURUSD could gain momentum last week to get over its daily SMA100 and its daily SMA 200, after having clear breaking of its trendline resistance which is extended from 1.3992 to 1.1712.

    Despite setting back to 1.1108, EURUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility could keep existence in its overbought region above 80 by its main line which is reading now 84.533 and also its signal line which is reading now 86.127.

    EURUSD could make today rebound, despite EU Feb Sentix Investor Confidence retreating to 6, while the consensus was referring to easing back to 7.6 only from 9.6 in January.

    Have a good day

    Kind Regards
    Global Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, Feb 8, 2016
    Last edited: Feb 8, 2016

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