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Strong Market Movement Seems to be on Hold….For Now

Wed, Feb 3 2010, 14:48 GMT
by Triffany Hammond

TrifFX  |  View company's profile

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It doesn’t seem like it is fair, when we have big news coming out of so many countries, that the markets seem to be holding their breath for the United States’ Non-Farm Payroll report. Fair or not, that certainly seems to be the case.

Generally speaking, rallies in the stock market and in commodities translate into strong movements in at least the Yen pairs. That hasn’t happened. Specific news reports that have shaken the market have meant a sell-off for that country’s currency, and that hasn’t happened. I’m referring to the 40B in unaccounted for debt that was just ‘discovered’ in Greece, but could also point to inflation indicators for the Euro-zone, and even Canada’s debt problems that may hinder their ability to host the Olympics. None of these things seem to matter to the market right now as all eyes seem to be on the jobs picture of the U.S.

Quite frankly it seems that the market is looking for the next indication from somewhere, anywhere, that the global markets are stabilizing. With Australia making the bold, but smart, move to hold their interest rates steady after 3 rate hikes in a row all eyes are on the horizon to see who might have the next good numbers. The U.S. just seems next in line since last Friday’s GDP numbers blew away market expectations. If that glee is to hold then we need to see proof that increased domestic product has translated into jobs. If it has, we will see one more shift in sentiment back toward economic fundamentals driving the currency markets once again. Though one more shift in that direction will be something to celebrate as a sign of stabilization in the global markets, it won’t be the last one necessary to return to our old paradigm, however putting one step in front of the other toward solid trading ground is the goal as we, the global marketplace, work toward healthy trading conditions once again.

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Published on  Wed, Feb 3 2010, 14:50 GMT

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