Forex headlines for December 6, 2013:

  • November non-farm payrolls 203K vs 185K expected
  • Unemployment rate 7.0% vs 7.2% expected
  • October US personal income -0.1% vs 0.3% exp m/m
  • PCE inflation 0.7% vs 0.9% prior y/y
  • December US Michigan consumer sentiment flash 82.5 vs 76.0 exp
  • Bill Gross says December taper 50/50 after NFP
  • Fed’s Plosser: Unemployment fall another signal to taper QE
  • Fed’s Evans: Will be open-minded on tapering in December
  • November Canadian employment change 21.6k vs 12k exp
  • Canadian unemployment rate 6.9% vs 6.9% exp
  • Canadian finance minister says he would tightening mortgage rules again if needed
  • WTI crude setttles at $97.65
  • S&P 500 gains 20 points to 1805
  • NZD leads, JPY lags badly

EUR/JPY was a major story this week as it ripped above the 2009 highs and above 140. The close on Friday at 141.03 is significant because it’s above the 61.8% retracement of the decline from 2008-2012, clearing out one of the final major resistance levels up to 170. Without doubt, the gains in the pair are the most significant technical move this week.

Yen crosses were broadly stronger on the day, with USD/JPY climbing as high as 102.96 and settling near the highs of the day. It was the only pair that took a direction after NFP and stuck with it.

EUR/USD impressively closes above 1.37 at the highest levels of the week. There are plenty of reasons to dislike the euro but technically it has broken out and it seems as though no bad news can sink it. At the end of the day, you have to listen to what the market is telling you.

The Australian dollar knee-jerked 70-pips lower to 0.8986 on the jobs report. It was the lowest since September but the move lasted mere minutes and it reversed within the hour. From there, the momentum continued higher, all the way to 0.9118 before it closed the day at 0.9101.

Gold closed at $1229, the lowest weekly close since July. The market was volatile within a $50 range this week — $1210-1260. It tried both sides of the equation on Friday before settle in the middle.

The S&P 500 fractionally missed scoring its ninth consecutive weekly rally. It ends the week down 0.72 points, or virtually flat.