Binary Options News : May 12, 2013
USD/JPY Breaks 100 Mark
Friday’s trading was dominated by the markets reaction to a better than expected jobs report from the US and the USD/JPY breaking the 100 dollar mark for the first time since April 2009. The USD advanced after a speech made by Fed Chairman by Ben Bernanke on Thursday in which he failed to say anything that implied that the Federal Reserve will re enter the currency war by boosting stimulus or generally talking down the USD. Recently, we have seen the USD soar against all of the major currencies and close the week at a 4 year high against the JPY, a 1 month high against both the EUR and the NZD, a 10 month high against the AUD and an 8 month high against the CHF.
Thursday saw the US Department of Labor reporting that the number of initial jobless claims in the U.S. last week dropped 4,000 to 323,000, beating the expected increase of 8,000 to 335,000, and coming just days after the April jobs report in the US easily surpassed market expectations.
Whilst the USD soared, Stocks in the US joined the indices of Europe and Asia and closed Friday with gains. The fact that the Fed confirmed they are in no rush to stop or change its monthly $85 billion bond purchasing program, which boosts stocks rising as a side result. Europe saw France’s CAC 40 close 0.64% higher, Germany’s DAX 30 close 0.19% higher and the U.K.’s FTSE 100 finish up 0.49% as talk of green shoots in the UK economy boosted the UK stocks. Close of trading in the US on Friday saw the Dow Jones Industrial Average finish 0.24% higher, the S&P 500 index advance 0.43%, and the Nasdaq Composite index close 0.80% higher.
The USD enjoyed healthy gains against all its counterparts as softer than European data an better than expected US data sent the greenback to new highs. The EUR/USD was down 0.40%, the GBP/USD hit a 2 week low – down 0.55%, whilst the USD/JPY, having broken the 100 mark for the first time in 4 years, closed up 0.99% at 101.62. Against its Canadian and Australian cousins the USD gained 0.39% and 0.69% respectively.
The strengthened USD and some strong profit taking meant prices fell in the commodity markets. Gold dropped 1.49% whilst Silver fell 0.34% as investors cashed in on recent gains made earlier in the week. Natural Gas continues its slide as supply data and warm weather forecasts saw its price fall 2.02%. Soft supply data, as well as the strong USD helped push Crude Oil down 0.47% to 95.84 a barrel. Chinese growth optimism backed by some healthy enough manufacturing data in the world’s second largest economy helped boost Copper prices, closing up 1.33% on Friday and bucking the declining commodities trend.
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