Dollar Ends Stronger
A good, but not great August unemployment numbers gave the dollar and stocks a solid lift, the data finally lifting the fog (for now) from the markets. EUR-USD, after spending the London morning session trading sideways, dropped nearly 100 points (to 0.9850) in the first hour following the 13:30 GMT data release, and was able to mount a rally to just over 0.9860 before resuming its downward course in afternoon trade. Dollar shorts ran for cover en masse, while dealers reported numerous fund accounts initiating fresh dollar long positions through out the session. USD-JPY ran to fresh one week highs, but ultimately ran into Japanese selling interest ahead of 119.00. The pair dipped below 118.50 on profit taking related selling, but managed to regain the 50 plateau into the close. USD-CAD dropped like a stone after great Canadian, and good US jobs data, taking out numerous longs in the process. The NY close under 1.5600 will give CAD bulls encouragement into next week. AUD-USD caught a bid from the US data as well, dealers seeing fresh fund and real money buying interest emerge. Today's uplifting session is expected to carry through to next week, though war talk and September 11 related event risk may weigh.
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