Between sequetration USD negative & the NFP report USD positive
The rally for the USD after Friday's jobs data have caught some short-speculative positions flat-footed with the better than expected jobs numbers of 236K & a 7.7% unemployment figure. Which overwhelmed the market with a reinforced rally contrary to its corrective pullback since Monday's opening trade sessions.
Today is a little more subtle since a follow-through have not taken place, but likewise will occur at the least time expected by the market. For now, it is safer to state the importance that the first quarter of the year will be good for the USD, as supported by more than favorable data for the US economy.
The only uncertainty is the cloud hanging over the political bickering of Washington amongst members of Congress with the Administration. Meanwhile, the Fed has taken upon themselves further to provide monetary easing since 2008 and would gradually pull-out once a more sustainable recovery is seen. While doing so, the ability of Europe to really overcome their regional debt problems has not been helpful. And in contrast, as most analyst have been expecting a hard-landing from China has been quite disappointed as it is expected growth is within the range of 7.5-8% for 2013 compared to the US projections of 1.5-2% for the same year. With BOJ having a firm and aggressive stance for its monetary easing would likewise have to be within a competitive level amongst its trading European partners.
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