Job Losses Not As Bad As Expected

The US dollar rallied in Friday’s trading following a jobs report with data that was not as bad as originally thought. Data in the report showed that job losses were not as bad as had been feared. It was originally thought that about 550,000 jobs had been lost and many investors breathed a sigh of relief when the report showed job losses of 524,000.

Return to Risk Aversion

At present it looks as though the dollar will continue to provide investors with a safe haven and Forex opportunity. Many analysts see a return to risk aversion which will help the dollar and Yen due to their reputations as safe havens in times of economic crisis. Despite 12 straight months of job losses and weak economic data the dollar continues to provide Forex opportunities for traders and investors.

Euro Zone Economy Deteriorating

The already beleaguered Euro fell further after data revealed a deteriorating Euro Zone economy. Data showed a bigger-than-expected drop in French industrial production which put more pressure on the Euro. The Euro received little support from an unexpected rise in euro zone retail sales and consumer demand in the Euro Zone remains weak.

Yen Makes Gains

Another currency that has been helped by the global financial crisis is the Japanese Yen. Like the dollar the Yen provides Forex opportunities and is seen as a safe haven currency. In Mondays trading the Yen reached a one-month high against the Euro. Heightened risk aversion boosted demand for the low-yielding yen, as well as the U.S. dollar, as investors rushed towards safer assets. Currency economist Lee Hardman stated, “The U.S. payrolls numbers were pretty dreadful and helped underline fears that the U.S. labor market is undergoing a severe deterioration, knocking market confidence and helping to fuel yen gains.”

All Eyes on European Central Bank

Many Forex traders will be watching the European Central Bank which is expected to aggressively cut rates later in the week. Hopefully the move will stimulate European markets and provide even more Forex opportunity for investors.

Quick Forex Tip: The International Currency Trading market has no central exchange like stock and commodities markets. Currency markets are dispersed throughout the world and the primary trading centers are, in order of importance, London, New York and Tokyo. The geographic dispersal means that markets are always open somewhere in the world and traders can jump on the internet and hopefully make very profitable trades at any time of the day.