The JOB#s figures and unemployments rate have been over-shadowed by surrounding external factors coming from Europe which we can consider to be the real catalyst for the USD price recovery. But the initial ill effects on US Equities have contributed to the day's trajectory lower after the report with all three (3) major indices down in double digits respectively.
Although, the market has pricing in a higher probability of a December rate hike still weigh in the market as the USD gradually advances above the 94.00 levels. Talks of possible new Fed members' dovish or hawkish stance on the US economy and monetary policies are also up in the air for discussion.
Meanwhile in the UK, Prime Minister Theresa May is struggling with political uncertainty among her party members questioning her ability to resolve Brexit negotiations is ongoing. This led the Sterling Pound to continue to depreciate further at 1.3038 as of this writing.
Along side other issues in Europe, Spain's crisis with the Catalonian likewise have added more selling pressure for the EURO that led to further declines at the 1.1670 levels not since July 2017. Earlier signs on prices were indeed made known prior to these declines with the EURO and CABLE, but we must admit that we have simply walked into these market conditions that somehow enhanced our trade position based on the previous market view analysis released last Sept 23rd, when Moody's downgraded UK credit rating over Brexit. Session pullbacks are not to be discounted.
These three (3) major catalyst have formed the main support for the USD recovery which have outweigh the Jobs report. With that said, the USD-DXY is trading at 94.14 with an initial session high at 94.28 with probable extensions at 95.05/10 for now. For as long as no unexpected market changes appear in the near term, remain cautious for any possible resolutions in Europe that would redefine market activity.
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