June 6, 2008 4:25 pm

Fundamental Alert – USD Plummets

By: Mark

6-6-08

16:27 GMT – USD dropped sharply across the board as unemployment rose to 5.5% and payrolls shrunk for the 5th straight month, adding fuel to the argument that the US is already in a recession. The deeps setbacks in the dollar blew out many dollar bull’s stops and a rebound looks limited.

The shocking factor about the NFP releases was not the NFP release itself – it was actually better than expectations by at least 11,000 jobs – it was the details of the employment rate. Specifically the 5.5% unemployment rate was much higher than expected and traders took that as a sign the US economy has more trouble ahead. Couple that with the fact that the NFP payrolls decreased for the fifth consecutive time – the most since 2003 – and you can see why dollar bulls sat out and why dollar bears sold at an incredible rate.

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1 Comment on "Fundamental Alert – USD Plummets"
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    June 6, 2008 at 7:52 pm
    samuzowulu says:

    Please I will like to be doing position trading. Please I will be glad for any help you can give me towards studying and developing the ability. I will really appreciate your help thanks.

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