Forex headlines for February 7, 2014:

The market got it wrong on the knee-jerk reaction to non-farm payrolls. The US dollar and stocks plunged on the job creation headlines but the unemployment and participation rates told a more positive story and that’s what won out. USD/JPY plunged to 101.47 but climbed all the way back to 102.35 at day’s end.

The pairs that were able to hang onto gains were EUR/USD and cable. EUR/USD spiked up to 1.3642 from 1.3575 but gave back almost all the gains in the hour or so following the data. Later, however, the upside won out again and we close out near the high at 1.3636.

Cable was more of a one-way street. It broke higher from a triple-doji, taking out 1.6360 and that pulled in the technical buyers. Even as the US dollar recovered, cable continued higher and late in the day broke 1.6410, erasing much of this week’s losses.

The Canadian dollar got a big boost from the jobs report and USD/CAD fell below 1.1000 and down to 1.0968 but it proved to be a buying period as it’s been a steady climb back to 1.1039.

The Australian dollar spiked higher in the wave of USD selling immediately after non-farm payrolls. The top was 0.8999, with offers at the big fig and 0.9005. In addition, a $2 billion 0.8940 expiration weighed. The Aussie was still one of the top performers on the week and closed near 0.8960.

Have a great weekend!