The dramatic week came to end with the bulls regaining their power over the market after the release of the U.S. unemployment and Non-farm payroll numbers, where the unemployment rate fell to 7.4% down from 7.6% for June, while the economy managed to add only 162,000 jobs in the month of July against the expected figure of 184,000.
Swing traders may not have gained much from this week as the major currencies are now back on the level which they started last week from. The euro remained in range for 3 days and held firm against the U.S. dollar as the German inflation numbers were satisfactory and the unemployment level in Germany, Italy and in the Eurozone also fell.
As far as the pound is concerned, the week was highly volatile for it as the mixed fundamentals caused a dramatic movement in the market as the Manufacturing and Construction sector grew way better than expected in the U.K. economy.
However, good ADP non-farm employment, quarterly GDP of the U.S, and reduction in unemployment claims resulted in allowing the bears to take control over these pairs on Thursday where both these pairs plunged more than 100 points.
Aussie remained extremely bearish and lost more than 370 points last week as the Chinese stock market continues to cause a major sell-off while the Building approvals and import prices in the Australian economy disappointed the investors and raised further concerns regarding the stability and purchasing power of the consumers.
The last major event for last week was the NFP data where a much lesser number of jobs were added in the U.S. economy, and despite the lowering of the unemployment rate, investors went dovish that caused the major currency pairs to give a sudden bullish spike. The euro gained substantially and is back again in its short-term bullish zone and would remain in it as long as it is moving above 1.3270.
Same goes for the Gbp/Usd as it is currently trading well above 1.5214 where it soared more as compared to the euro because its construction PMI data gave a reading of 57.0 against the expected figure of 51.6 that shows a considerable progress in its growth.
Gold fell on Friday but yet again gained after the NFP data and is back to 1314 that is its previous range level, and would remain in range as long as it does not sustain below 1295 and above 1345 level.
To contact the reporter of this story: Jonathan Millet at email@example.com