Friday, 4 Jun 2010

USD Already Making Major Gains Ahead of Non-Farm Report

With the U.S. Non-Farm Employment Change Report scheduled to be released shortly, the EUR/USD pair has begun to fall rapidly as investors are anticipating a positive number. In the past hour alone, the pair has gone down over 100 pips, and is currently trading at 1.2060. At the same time, GBP/USD has also fallen substantially, and is currently trading at 1.4565. Analysts are predicting a figure of around 520K for the Non-Farm report, which if true would represent major growth in the U.S. employment sector.

Assuming the Non-Farm figure comes in as expected, USD will likely continue to make gains during the course of the day. At the same time, traders can assume that prices for commodities like Crude Oil and Gold will fall. Improvement in the U.S. jobs sector will likely boost investor confidence in the global economic recovery, which usually weighs down on commodity prices.