The Fusion Media Network:

Real-Time Quotes:

Home

Analysis

Fundamental Reports

Fundamental

Technical

Futures

Central Banks

Forex Brokers

Trading Tools

Crosses

Payrolls sink US further

By:

Finotec

2008-04-02

votes

View Comments (0)

Previous Analysis | Next Analysis

	Text Size
	Print
	Email
	Add a Comment

US non- farm payrolls declined 17K in January. The market was forecasting a 55000 increase in people employed excluding the farming industry

US non- farm payrolls declined 17K in January. The market was forecasting a 55000 increase in people employed excluding the farming industry, although most economists were ready for a stronger number after Wednesdays solid ADP report. This in hindsight was misleading and contributed to the first fall in payrolls since August 2003. US firms are holding back hiring in the current environment, but Fridays report is certainly worse than most expected.
If the economic data remains weak and the delivery of negative news from the financial sector continues, the FOMC will be expected to tackle sliding growth risks in a more forceful manner; as it has over the last two weeks.
The ISM staggered the market, rising to 50.7 in January from 48.4 in December (versus consensus of a fall to 47.3). The low dollar and healthy foreign demand for exports has sustained the manufacturing sector, amid the doom and gloom of the US economy.

The US dollar rose against the Euro on Friday, with markets paying more attention to the stronger US manufacturing data than the weaker jobs report. Euro/ Dollar reached highs near 1.4980 after non farm payrolls before ending New York trade near 1.4800, and is around 1.4818 11.00GMT. Ahead tomorrow in the US, Non-manufacturing business activity index is released. The data is expected to slip further in January to 53.0 from a revised 53.9, reinforcing that US GDP growth will continue to slow in early 2008 and further weakening the greenback.

The Reserve Bank of Australia (RBA) meets tomorrow, where a further rate tightening is on the cards. Widening interest rate differential and USD weakness has seen the Aussie spike past 0.9000, where it reached highs of 0.9082 11.00GMT. This is great news for Australian importers, where the value of goods imports increased by 0.3% in December and expected to rise further in January.

Digg

Del.icio.us

Mixx it!

Reddit!

Wikio

Next Analysis:

Content Provided by:

Finotec
Derivative and forex trading broker Finotec is a division of leading real-time Internet trading company Finotec Trading Inc, which pioneered the world of online forex trading in 1998. After launching our revolutionary forex online trading platform in 2001, we continued to improve our services and ...

Disclaimer:
Trading in Foreign Exchange, CFDs, Options, Futures and Commodities and engaging in Spread Betting on financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment. You should only speculate with money that you can afford to lose. These products may not be suitable for all investors, therefore please ensure that you fully understand the risks involved and seek independent advice if necessary

News

Quotes

Forex Analysis

Forex Brokers

Forex Software

Live Events

Charts

Education

Forex Forums

Languages

Risk Disclosure: Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.