(As written for My Paper on 11 October 2011. Click here to enlarge)
Risk currencies are having a brief rally this week due to three reasons:
1. United States employment situation beat expectations
2. Bank of England increased its asset-purchases ceiling
3. European leaders pledged to recapitalise banks
US non-farm payrolls (NFP) rose by 103,000 last month with private sector payrolls rising by 137,000. This was higher than the 50,000 estimate by industry experts. Additionally, the August NFP report was also revised up from zero to 57,000.
At the start of the week, EUR/USD edged up nearly 100 pips to reflect the cheer of the jobs report. Read more…