Intraday Market Thoughts

Aussie Drops on Jobs Disappointment, EUR Regains 1.46

by Kyle Morrison
Jun 9, 2011 4:38

Aussie drops by nearly a full cent after a disappointing May jobs report crushed all hopes of a July rate hike. May jobs rose 7.8K, well below median expectation for +21.3k, with the unemployment rate inching higher to 4.93% from 4.86%. The drop in April jobs was larger than initially expected, revised down by 7.3K, eroding all of Mays gains.

All eyes will be on the ECB press conference (12:30 GMT), as traders await if JC Trichet describes the bank's stance on inflation as "strongly vigillant". It is fair to expect a higher euro if Trichet does mention these words, and to expect a weaker euro in the event that they are omitted.

See our latest premium piece for the various trading ideas on the ECB scenarios, with suggested trades in EURUSD, EURJPY and EURGBP. We also maintain our trades for oil, gold, silver, S&P500 and FTSE-100

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