MORNING BRIEFING: The dollar rose sharply following the very good report on U.S. employment.

[RTFX-Trading]

MORNING BRIEFING: The dollar rose sharply following the very good report on U.S. employment.

What’s new:
Kuwait sells its stake in Citi, nice gain of $1.1 bn!
U.S.: Obama promises efforts to revive the labor market.
United States: Employment better than expected, the unemployment rate rising.
United States: increase of 0.60% of orders to industry in October.

Today:



Rates in Asia and Indices:
EURUSD: 1.4905 - 1.4851.
USDCHF: 1.0174 - 1.0137.
EURUSD: 1.6516 - 1.6436.
EURJPY: 134.35 - 133.46.
USDJPY: 90.36 - 89.70.
Dow Jones: 10'388 +0.22%.
NASDAQ: +0.98% 2'194.
S & P 500: 1,105 +0.55%.
Nikkei: 10'167 +1.45%.
Shanghai : 3’319 +0.08%.
Gold: $ 1'155.
Crude oil: $ 75.62.

Comments:

The dollar is up sharply after the figures on employment in the United States. Job losses in November were much lower than expected and the unemployment rate fell to 10%. The number of job losses "only" 11,000 last month was the lowest since November 2007. Some analysts believe the dollar's rebound could be short-lived, it is premature to conclude that the downward trend of dollar has ended. Other investors believe that these two elements combined challenge the position of the U.S. Federal Reserve is to keep interest rates low even for a moment.
Personally, I think the good employment report on Friday is not to underestimate and that the support of Jean-Claude Trichet and Ben Bernanke on their desire for a strong dollar are factors that will push the parity EUR/USD down to 1.4300, a break of 1.5150 challenges this fall.

Good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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