FXstreet.com (Córdoba) - Greenback ended the week mostly up across the board but without considerable gains and far from intra-week highs. Stocks fell worldwide for the second week in a row. Economic data release during the week suggested that economic recovery will take time.
Dollar and Yen higher
The Dollar fell on Friday but it was not enough to erase previous gains. EUR/USD managed to finish below 1.4600, but also Greenback failed to hold below 1.4500. After the release of NFP the pair rally downside but quickly turn around and jumped. The Euro is still pulling back from year high at 1.4842.
Against the Yen, Dollar finished just a few pips above Monday's opening price, but still remains under extreme pressure as trend favors the yen. USD/JPY fell at the beginning of the week to an 8-month low at 88.20. The Yen rose against European currencies and posted multi-month highs but finished far from those levels. EUR/JPY is holding above 130.00, a clear close below that level could send the pair lower and next week could be decisive. Against the Swiss Franc, the Yen confirmed a break of an important uptrend line, suggesting that CHF/JPY could fall further over the next days.
Cable revived in the middle of the week after tumbling on Monday, falling to multi-month lows across the board. The mid-term outlook for the Pound remains unclear and next week, the Bank ok England will decided on monetary policy. This event could bring sharp moves to the Pound.
The International Monetary Found joined a lot of economist and said that the recession was over. But the problem now is the speed of the recovery. Economic information showed that the process could take a lot of time. The non farm payroll revealed that the U.S. labor market weakened in September. The unemployment rate rose to a 26 year high.
Stock fell sharply on Friday in Europe. On Wall Street, main indexes ended lower but far from intra-day low. Considering the week stocks plunged worldwide for the second week in a row and continues to pull back after posting year highs. On many markets the results for the week where the worst since mid June.
On the other side, Treasuries notes soared and finished at the highest level since May, despite that the Federal Reserve will soon end it purchases.