Friday, 2 Apr 2010

Non-Farm Payroll Data Carries Muted Impact

With due consideration given to the rise in American employment from improved weather conditions, and a surge in hiring by the US Census Bureau, the effect today's NFP release had on the market was minimal. It may have been that the market's low liquidity also muted the impact felt by today's less-than-forecast results.

Expectations were for a rise of 185,000 jobs added this past month in the United States, but the actual results only came in at 162,000 new jobs. The initial impact on the market was a quick surge in the strength of the US Dollar followed by an even faster reversal. The price of the EUR/USD pair is currently seeing only a minor down-turn, opposed to the sharp price swings which many investors were anticipating. The pair is now trading at 1.3530, but is beginning to see some downward movement.