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US Labor Report Very Positive For Global Growth

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The US labor reports for November and December were revised higher as the string of bullish news continues. US payrolls rose 157,000 in January after a revised 196,000 in December and a whopping 247,000 in November. The S&P 500 Index rose 15.06 points on Friday to 1513.17 and the Dow Jones Industrial Average rose 149.21 points to 14009.79, closing above the key psychological level of 14000 for the first time in 5 years. The Nasdaq rose as well to 3179.10, up 36.97 points.

Traders Expecting Profit Taking On Yen Shorts

Traders are taking a cautious approach to the yen to start the new week. The yen has declined against the dollar for a record 12 straight weeks. The RSI for the yen is at 22. Readings below 30 indicate that an asset may be oversold and do for a reverrsal. The yen depreciation has been so rapid that I’m booking some of my profits. I think the overall trend for the yen is lower, but I have to be cautious as well. The dollar is at 92.649 yen and the euro 126.250 yen.

Aussie Dollar Higher Today

The Aussie dollar is higher against almost all of its major peers today after a report showed inflation rose last month. Expectations are for the Reserve Bank of Australia to keep rates on hold when they meet tomorrow. The Aussie is also being supported by data out of China that showed services rose again to 56.2 in January from 56.1 in December. The Aussie is trading at 1.23306 to the New Zealand dollar, 1.04334 to the US dollar and at 96.676 Japanese yen.

Gold Priced In Yen Reaches Record High

Gold futures rose to 5000 yen per gram on the Tokyo Commodity Exchange. As the yen has weakened against all major currencies, the demand for gold in yen terms has risen dramatically. As the yen continues to weaken this year, look for gold in yen terms to continue to rise as the Japanese buy more gold to offset their weakening currency.

Most Markets Trading Flat To Start The New Week

Most markets are quiet to start the new week here in Asia. The ASX 200 is down 13.6 points to 4907.50 on profit taking. In the commodity space, crude oil is at $97.54, down 23 cents, gold is up $2.30 to $1672.90, silver down 11 cents to $31.85, and corn up 2 cents to $7.38 a bushel. Platinum is the big mover again, up $18.40 to $1706.10. Platinum looks set to break out higher in this early start to trading.

Economic Data On The Calendar

  • 0800 Spanish Unemployment 150.00K forecast -59.10K prev (Euro)
  • 0930 Great Britain Construction PMI 49.1 forecast 48.7 prev (GBP)

That’s about it on the data front, or at least that’s all that you need to pay attention to. I don’t see anything else to move the markets until the RBA interest rate decision tomorrow. Other than that the markets are really going to be waiting for the ECB and Bank of England meetings on Thursday. The press conference after the interest rate decision is the key point to watch as Draghi and King give their assessments of the economy.

As always good luck to all binary traders this week and be sure to check back for the latest update!