The ADP non-farm payroll data beat the estimations yesterday and lifted the stock markets. The number of continuing jobless claims was less than analysts' expectations and this contributed to the positive atmosphere in Wall Street. Nevertheless, the investors have been waiting the whole week for the official Non-farm payroll data that is published today. The NFP is the most important indicator regarding the US economy, and has the highest impact on all of the financial markets around the globe.
The reason for this is that this information tells the story about the most important thing regarding the US economy these days- the unemployment status. A growth in the NFP data will support the assumption that the US economy has started to pull itself out of the deep recession. However, disappointing results might cause an aggressive reaction by the financial markets and crash them down.
EUR/USD
The better than expected economic data helped the USD to continue its bullish momentum. The investors, who see the news regarding the ADP NFP change, figure that the US economy is in a better condition than many other developed countries and therefore the USD made an impressive movement yesterday, in spite of the rising of the stocks.
The first week of 2012 tells us that the investors do not see a bright future for the European economy and they sale Euros in every opportunity they get. The pair successfully broke-down the psychological support of 1.30 and it is now heading towards 1.25. If the EUR keeps losing points so fast, we might see it at 1.15 within just few months.
GOLD
The metals have started 2012 with a bullish momentum but it is hard to tell in this point if this can mean anything about the trends of the year. The precious metals closed 2011 with sharp declines, which we knew how to take profits of, and therefore the recent up-correction was expected in the technical point of view.
The gold reached the 200 SMA, which was the target we set for the current correction, and it might continue rising towards $1650-$1700 if the positive atmosphere in the stock markets remains. Likewise, the 200 SMA might be a strong resistance that will force the gold to reverse down from this point.
SILVER
The silver is trying to retest the break-down area of $30, which it broke three weeks ago. The metal made the double-bottom pattern on the support of $26, but this bullish pattern does not necessary mean that the silver is going to continue rising. A break-up of the resistance at $30 might cause a short-squeeze that can take the price up to $31.5, but stochastic levels indicate that the current bullish correction is about to over, so a bearish reversal is possible here.
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