The New York trading session began with a jobs report that had high expectations but failed to live up to the hype. Following the report the euro continued its move higher and the price of gold surged .
The US Department of Labor released its monthly Non-Farm Employment Change that fell short of the market's high expectations. The jobs report for the month of November showed only 39k new jobs were added to the US economy. Economists surveyed had largely expected an increase of 143k. The unemployment rate also crept up unexpectedly, rising to 9.8% from October's reading of 9.6%.
This helped the euro continue its bullish correction against the dollar with the EUR/USD rising as high as 1.3373, a level that coincides with the 38.2% retracement from the June to November move. The pair began the day trading at 1.3203.
Traders looked to have moved into safe haven assets after the disappointing jobs report. This may explain the rise in the price of gold and the Japanese yen. Spot gold prices were significantly stronger today, rising to $1407 from an opening day price of $1389.91. The yen was up on the dollar as the USD/JPY is trading lower at 82.88 after opening the day at 83.65.
The jobs report left traders with little room to cheer as high expectations had been building. Previous job reports had all shown improving employment numbers. This week's ADP job report surprised to the upside also increased market expectations. The negative data should push the trend of the last three days further with a recovery of the euro and rising gold prices.
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