Looks like it is all over but the crying…Markets have settled down into a shell-shocked quiet after a choppy reaction to the US employment report. Non-farm payrolls maintain their steady improvement but the unemployment rate continues to rise and many discouraged workers remain on the sidelines, waiting to jump into the labor pool (or puddle).
Traders expect a choppy afternoon, driven by algo trading, which will run markets up and down willy-nilly until they find pockets of liquidity.
One pocket of liquidity is down at 1.4190 in EUR/USD (China) while another is up at 1.4290. The market is long, so more pockets may become evident at lower levels as the day progresses. Stop losses lie at 1.4175 and below 1.4150, traders report. We trade now at 1.4120.
