Forex headlines for May 3, 2013

It was an ole’ fashioned risk rally with the yen crashing after non-farm payrolls. USD/JPY instantly rallied 100 pips to 99.05 and then spent the rest of the day chopping in a 30 pip range.

The reaction was less cohesive in EUR and cable. The initial move was a surge into dollars and both pairs plummeted but bids ahead of the 55-day moving average at 1.3030 in EUR/USD caught the fall and the euro turned around to 1.3150. Later, it drifted back to 1.3115.

Cable fell as low as 1.5480 on the kneejerk then ripped to 1.5600.

The commodity currencies climbed higher but it was a slower move.

Gold was surprisingly quiet, stuck in a tight range and nearly unchanged on the day at $1469.