US Jobs report released on Friday presented another clear sign that the US Economy is on its way to the economic recovery. Non-Farm Payroll added around 430K and the Unemployment Rate fell to 9.7% versus 9.9%. These numbers further our expectation for further positive numbers affecting the markets in this week ahead.
As for the currencies markets, the European currency fell again to record fresh 4 year lows at around 1.1875, which was hit during the Asian Session. With the clear weekly close below the psychological support at 1.20 another negative sign for the euro and could give us a sign that the pair may test 1.17 later this week.
As for the British Pound, the pair fell again as we expected and warned on Friday that the pair would not pass 1.4740 towards our 1.4450 target during Friday especially after the US figures, which boosted the dollar again across the board. This week GBPUSD is expected to continue with its down move again towards 1.42 and 1.40 with 60% chance of seeing the pair drop towards 1.3930.
USDCHF continues to trade higher after it was supported by 100 MA on 4 hour chart at 1.1505. Its now trading above our 1st target at 1.1635 and we are expecting it to continue further towards 1.1745 as the weekly target for now.
All in all, the US Dollar is likely to continue with its uptrend again, after a slight retracement to the downside last week. Traders should keep an eye on the economic figures this week in addition to FED Bernanke speech for any mention of further information about the exit strategy.