Slow Start to the Morning

Its been a slow start to the day as there has not been much movement in any of the pairs so far. It was a holiday in New Zealand and maybe even those few traders who were awake were probably watching the Super Bowl but we expect the rest of the week to be volatile and filled with surprises just as last week was. Last week, we had a strong ADP employment report which raised the expectations for a strong NFP report as well. And yes, we did get some strong numbers in the NFP report but the market did not anticipate a 0.1% rise in the average wages when 0.3% was the value that was expected. This disappointed the markets and they did not know in which way to react.

The traders did realise that the data was not as good for the dollar as was expected, overall, and they chose to sell the dollar but not too much as well as the employment numbers were not something that could be ignored easily. So, we saw the euro make a move towards 1.0800 but the move has not been strong enough to lead to a breakout and it was the similar situation in other pairs as well and hence we see some kind of a stalemate in the markets at this point of time and it remains to be seen how the London and NY session will pick it up.

Looking ahead to today, we do not have any major economic news from any part of the world today and hence, this being a Monday, we expect some more consolidation and ranging in the markets today. Watch out for any breakout from the dollar bears today or during the course of the week as it could then signal the beginning of a short term trend.
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