Unemployment Tops 10%; Gold Continues to Climb
November 6th, 2009 Posted in Chief Analyst Special Report, Indicator Explorer
Name: Greg Holden
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In a move which US President Barack Obama has called “sobering,” the American unemployment rate has topped 10%, hitting a mark of 10.2% today following a worse-than-expected Non-Farm Payroll (NFP) data release. While many economists are quick to claim that the global economy is returning to growth, these signals seem to push many investors in the opposite direction. Following today’s important news events, the US Dollar began to climb from a rise in risk aversion.
Since the US Dollar is a traditional safe-haven investment, its post-NFP movements were bullish despite the expectation of a declining USD following negative fundamental data. Gold apparently also met with some support following today’s employment data, as it currently trades near $1,095 an ounce.
Additionally, Crude Oil experienced a sharp sell-off following today’s job reports and was seen trading near the $77.50 price level towards the end of this week’s trading. Going into next week it seems safe to expect a correction to these movements as the market prices in the newest levels. Gold still appears to have some bullish room left, while the greenback will likely see some modest corrections following the bullish behavior it saw today.
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Tags: crude, Crude Oil, Employment Change, Forex, forex blog, Forex Trading, Gold, Gold trading, Indicator Reports, nfp, Non-Farm Payrolls, oil, Unemployment, US employment data
