The risk appetite is still depressed by the weak US non-farm payrolls of March which have shown adding new 88k jobs while they were expected to be to 200k from 236 in February have been revised up to 268k. the US major indexes are still in the red territory while the greenback is still under pressure versus the single currency which could have a place again above 1.30 after yesterday rising following Draghi’s comments which ensured that there is no way to use Cyprus rescue plan as a template in other euro zone countries.
The British pound could get over 1.5259 resistance versus the greenback also easily after these data which underscored the weakness of the US labor market which can be exposed to turning back down as the private sector has also added lower than expected number as we have seen previously this week too by only 158k jobs while the market was waiting for 200k and also US initial jobless claim of the week ending on 31st of last market which has shown strong rising back to 385k after spending 5 weeks below 360k 5 of them were below 350k to highlight what has been said once before by Bernanke that the rebound of the labor market is in need to be ensured that it’s not temporary.
The greenback has come also under pressure versus the Japanese yen but the bargain hunters do not hesitate to get along with it at any bottom they see and this time was at 95.74. So, it has been pushed back up to get over 97 again despite the risk aversion following this dovish figure with the current unprecedented ultra easing stance of BOJ.
But the greenback could rise versus the Canadian dollar in a strait way following these data in a reversed way of what has been done with the release of February report as it came with disappointing this time showing losing 54.4k jobs in March after adding 50.7k in February.
But it was not easy to it to get over 1.0235 resistance versus the Canadian dollar as Mar Canadian Ivey PMI seasonally adjusted figure rose up to 61.6 from 51.1 while the consensus was revering to rising for 52.4 giving it protection with first touch.
FX Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143
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