Mar. 7: American session
Tatiana Norkina , FBS analyst
The market has a very nervous reaction to the rise of the unemployment rate in the United States. According to the published data, it has increased to 6.7 % in the past month, while analysts predicted saving at the same level of 6.6%. This led to a sharp strengthening of the U.S. dollar index which soared to around 79.85 after today's decline to the level of 79.45. Stock indexes are also growing: S&P500 - +0.40%, DJIA - +0.38%. On currency pairs there can be seen an explosion of volatility. So, EUR/USD pair fell to 1.3850 mark after the formation of the maximum of 1.3915 and GBP/USD pair came back to 1.6725 minimums today.
Currency pair USD/CHF has been corrected to the 0.8816 area after an update of the annual minimum, going down to around 0.8755 mark. Dollar has greatly strengthened and against the yen: the pair USD/JPY was trading at 103.75 maximum.
Canadian "suffered" today mostly. The flames were fanned well due to the data on the labor market. According to the report, in the past month the number of employees in Canada decreased by 7 thousand people, while experts expected an increase of 15 thousand people. The pair USD/CAD grew by 115 pips per hour in the figure 1.1100 area.