Feb.5: American session
U.S. dollar is moving downwards against major world currencies after the preliminary data on employment in the non-agricultural sector of the U.S. economy which turned out to be somewhat lower than expected: the increase calculated only 175 thousand people instead of 180 thousand. In addition, according to revised data the previous changes involved 227 thousand. This led to a sharp rise in market volatility. The EUR / USD pair once again bounced from the 1.3500 support and the 1.3525 3-days resistance has finally been hit. The GBP / USD has turned up after the formation of a session low at around 1.6250 and is currently being traded at 1.6320 .
The USD / CHF plummeted to the 0.9000 figure due to the above mentioned news release, but then reverted back to the current maximum of 0.9050. However, now the pair is descending gradually exactly in the middle of this range. The USD / JPY also behaves uncertainly, being traded in the mid-range of 100.80-101.60 . Bears can gradually build up pressure in order to trigger further resumption of the downtrend.
The USD / CAD pair has been strongly influenced today by the data on building permits. According to the report by Statistics Canada, the number of permits was decreased by 4.1 %, while analysts expected an increase of 2.0 %. This caused an expansion in demand on purchases of the U.S. dollar against the Canadian dollar. The pair soared from today's low of 1.1035 to yesterday's highs of 1.1120, and is currently consolidating at the 1.1100 figure.
Tatyana Norkina, an analyst at FBS