Euro Erases Gains After US Jobs Data

dropped to 1.3010 against the US dollar (USD) after Non-Farm Payroll data pushed growth expectations for the American economy. At the same time, the better employment figures hint that the Federal Reserve’s Ben Bernanke may be willing to stop Quantitative easing earlier than expected. The pair dropped by as much as it has risen a day earlier when the European Central Bank president, Mario Draghi, had boosted hopes for a European recovery within 2013.

The US500 (SPI) which tracks the top 500 US corporations has moved above 1547 moving above its previous resistance at 1527 as better than expected Non-Farm Payroll data from the US boosted expectations for a swifter recovery.

WTI Crude (OIL) rose to 91.85 as better than expected US jobs data puts pressure on energy prices amid higher growth expectations.

Weekly option volatilities for the EUR/USD dropped slightly from 8.85 to 8.75 as markets balance risk and fear keeping premiums unchanged.

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Movers & Shakers

EUR/CHF

The euro (EUR) edged higher against the Swiss franc (CHF) moving above 1.2370. The pair has been strengthening as funds are looking for higher returns and are moving away from the safe haven that is Switzerland into riskier European equities.

Outlook

EUR/USD Pivot Point 1.3035 with a preference to go SHORT at 1.3035.

Sentiment is 52% of deals to buy EUR

USD/JPY Pivot Point 95.45 with a preference to go LONG at 95.45.

Sentiment is 61% of deals to buy USD

GBP/USD Pivot Point 1.4980 with a preference to go LONG at 1.4980.

Sentiment is 62% of deals to buy GBP

AUD/USD Pivot Point 1.0210 with a preference to go LONG at 1.0210.

Sentiment is 73% of deals to buy AUD

GOLD Pivot Point 1587 with a preference to go SHORT at 1587.

Sentiment is 64% of deals to buy GOLD

OIL Pivot Point 90.80 with a preference to go LONG at 90.80.

Sentiment is 71% of deals to buy OIL

US 500 Pivot Point 1530 with a preference to go LONG at 1530.

Sentiment is 27% to buy US 500

UK 100 Pivot Point 6400 with a preference to go LONG at 6400.

Sentiment is 24% to buy UK 100

Calendar

EUR - French Industrial Production m/m at 07:45(GMT) Forecast -0.1%

CHF - Retail Sales y/y at 08:15(GMT) Forecast 3.7%

JPY - BSI Manufacturing Index at 11:50(GMT) Forecast -6.2