Jobs, Oil, and the Dollar

After thinking for a while, I decided to let go of the forex terms right now and focus more on current events and market commentary. On days with not many events, like Sundays, I will continue to explain interesting and important forex terms.

Yesterday could be called Friday the 13, but it came a week earlier. The job report turned out to be extremely negative: 49,000 jobs were taken out of the market. The worse part is the unemployment figure which jumped to 5.5% from 5%, the biggest rise in 22 years. This figure means only one thing: the US is headed or already in a recession.

As a result, the US dollar and Wall Street took a dive yesterday. The EUR/USD pair, which nearly hit a bottom of 1.5360, simply soared to a rate of 1.5769 to end the week. A forex trading system I am testing right now, Forex Tracer, took advantage of this huge leap and created nearly $1000 in about 5:30 hours from an account of $3000.

Wall Street wasn't too impressed with the employment figures as well and sent the Dow Jones index to lose over 400 points near the end. At the close, the Dow went down "only" 394.64 points, a 3.13% decrease. The S&P 500 sank 3.09%.

The bad employment report also signals that a rate cut is likely. This signal sent the oil to one of its highest one day rises: over 7% in one day. A barrel of oil is currently priced at $138.39.

Let's see what Monday brings.
Nadav

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