Mon 6th Dec: US payrolls once again jolts the market

Traders sold Dollars across the board as US Payrolls rose by a disappointing number of 112,000 (expected 200,000), spoiling the expectations of the Dollar’s bounce.
Although, the dollar fell against the majors, its fall against the Pound was sharper.
With the euro starting the week at an all-time high against the greenback, and the yen at a near five-year high, speculators grew wary of central bank intervention to support the dollar.
These fears were crystallized on reports that Japan and the Euro-Zone had already discussed the prospect of joint intervention.
But with the UK seen to be reluctant to intervene, speculators had a green light to sell the dollar against the pound, helping the Pound move to a 12-year high of 1.9470.
However, the disappointing data released would have little impact on the prospect of interest rate rise in the US later this week.
While the ZEW survey from Germany would undoubtedly show a further deterioration in the economic sentiment and thereby helping the Euro take a dip; the rising speculation of a possible intervention by the ECB would keep the Euro bulls from buying at any further levels.
However, the medium to short term view for non-dollar currencies continue to remain bullish. The Stock investors ignored the Payrolls news and concentrated on the economy expansion data released in the previous week.
The Dow closed the week higher at 10,592; while the Nasdaq was also seen trading higher at 2148.