Markets reversed to the downside with the start of the U.S. session today, as investors tend to close their bullish positions seen across the board as this week approached the end ahead of the coming busy week for Europe, despite the upbeat jobs report from the world's largest economy.
The U.S. dollar gained momentum as investors started to close their positions ahead of the coming week, where the U.S. dollar gained strength as the world's largest economy is recovering while fears are still existed over Europe heading towards another phase of recession, where the flow of upbeat fundamentals from the U.S. supported the sentiment to improve despite the escalating debt crisis, which strengthened the U.S. dollar as speculation for another round of quantitative easing fade away temporally.
The United States released the jobs report for November, which contained the number of jobs added to the economy plus the unemployment rate, where the report showed that 120 thousand jobs were added to the economy in the month of November compared with the previous addition of 100 thousands, which in result forced the unemployment rate to decline unexpectedly to 8.6% from the previous of 9.0%, which reflects the improvement in the U.S. economy.
The U.S. dollar index (USDIX) rebounded to the upside after setting the lowest at 77.96, to currently trade around 78.30, noting that the index opened the session at 78.29 and reached a high of 78.37.
On the other hand, the common currency, the euro, reversed to the downside against the strengthening U.S. dollar after reaching a high of $1.3549, to currently trade around $1.3463, where the EUR/USD pair opened the session at $1.3458 and reached a low of $1.3448.
Moreover, the Canadian dollar slumped against the U.S. dollar after unemployment surged in Canada, where the unemployment surged to 7.4% from 7.3% after the economy shed 18.6 thousand jobs in the month of November.
The USD/CAD pair opened the session today at 1.0136, and recorded the highest at 1.0178 and the lowest at 1.0078, and is trading in the moment at 1.0158.