The 20k decline in Jan payrolls followed a decline of 150K in Dec (originally reported as -85K), which was positive for risk appetite at the expense of the USD and JPY. But markets quickly started losing ground as their wounds from Greece and Portugal were too deep to heal. Do not forget the patterns of recurring spikes in Eurozone bond spreads (mentioned in this weeks article). EURUSD failed below $1.3750 and looks for prelim targets at 1.3620 and 1.3580. USDCAD fell on strong CAN payrolls but support held at 1.0640s as stocks and oil fell anew. Keep an eye on US 10 yr yields as further declines below 3.60% indicate deterioration in equity mkt confidence, which is usually USD-supportive.