FX.co ★ Fundamental analysis for February 04, 2013

The data of U.S. payrolls in January offered mixed figures, which ultimately served to the Dow Jones, which finished the week above 14,000 points. It has not happened for more than four years.

The published reports were not favorable in terms of the unemployment rate, which rose one tenth and stood back about 8%, while the number of jobs created was in line with expectations, as the December figure was revised.
The currencies had very different behaviors against the dollar. The euro touched for the first time in 14 months the maximum 1.3705 at the time the British pound sank looking 1.57. Strange combination of movements of the two major European currencies, which more than influenced by employment data, seemed mixed in buying and selling against each other by certain banks or investment funds, usual thing at other times, but rare at the time the reports are released.

The European session on Monday offered a somewhat more even in the movements of major currencies against the dollar.
The euro recoils a long way since the maximum mentioned on Friday. It is making a short-term downtrend against the dollar, after the break at 1.3570, a trendline, which could even accelerate the decline of the single currency during the American session.

The British pound, which touched 1.5670, is recovering slightly, but remains very bearish in the medium term. Its target is located in the area of 1.5350.

As for the yen, it fell again during the Asian session, to pressure exerted by the Japanese government on the BOJ to fight deflation. Japanese Finance Minister Taro Aso said the government is not aiming to depreciate the yen, and weakness in the currency is a result of policies aimed at getting Japan out of a deflationary recession. The yen has fallen more than 13% against the dollar in the past three months.