US jobs data came out much better than expected at 244,000 versus 190,000. This adds to the string of positive NFP results which started in late 2010 showing that employment is steadily growing in the US. Immediately after the announcement USD strengthened against the Pound and the Euro, however the trend reversed into USD weakness minutes later with EURUSD and GBPUSD being pushed to the highs of the day. Erratic moves are common after the NFP given it is one of the most watched figures and also because it is released on a Friday afternoon ahead of the weekend. A clearer trend may form on the Sunday Asia open or Monday morning in the London open.

Generally, a higher than expected result is good for the USD since it is a sign that the economy is on the road to recovery. However, attention must be paid to the consensus on the next FED action. Interest rates are the spotlight of the market and the FED have shown no sign of hiking rates whilst other regions, such as Europe, have hiked already.

Zoe Fiddes, easy-forex