Forex Trading - Advice and Tips

The Dollar rallied versus all majors after Nonfarm Payrolls came out better than expected with -11K versus -119K expected and -111 K prior. The reverse correlation between U.S economic data and the Dollar prices seems to have ended. The U.S jobs market is improving and the Federal Reserve is expected to raise the rates if the improvement continues. Unemployment Rate came out 10% versus 10.2% expected and prior. NASDAQ and Dow Jones gained by 0.98% and 0.22% respectively after the better employment data. Crude weakened by -1.29% closing at 75.76$ a barrel and Gold (XAU) dropped by -3.99% closing at 1160.2$ an ounce on stronger Dollar and weaker inflation fears. Today, Federal Reserve Chairman Bernanke will speak in Washington. Consumer Credit is expected with -9.6B versus -14.8B prior.

The Euro fell as the Dollar rallied after Nonfarm Payrolls data showed a massive improvement raising expectations for a rate increase in the Dollar, lowering the demand for the Euro. Overall, EUR/USD traded with a low of 1.4821 and with a high of 1.5090. Today, German Factory Orders are expected with 0.6% versus 0.9% prior. ECB President Trichet will speak in Brussels.