Earnings higher. Participation rate continues to stay low. Revision higher.
The EURUSD went higher initially on the lower NFP but is back down as traders ponder what a 5.1% unemployment rate means (thanks to a lower participation rate). The manufacturing fell -17K. There was a +44 revision
The pair is moving below the 100 day MA (moving below it) at 1.11118 (risk now). and is heading the next targets at 1.1086 and 1.1079 (see targets on the earlier post)
The USDJPY did a similar move with a move lower followed by a bounce back higher. The move lower stalled before the August 26 low as 118.438. The high has moved up to test the low from yesterday and broken 38.2% at 119.57 area.
What is the Fed to do here? The debate may well continue, but the revision and low rate should be tempting.
