Forex Flash: Rewind to NFPs to see reversion to fundamental focus - Investec

FXstreet.com (Barcelona) - Investec Treasury Analysts note that it seems a long time ago but they need to rewind all the way back to last Friday and the release of the US Non-farm payrolls to begin the update this morning.

They note that it was an upbeat report coming in at +165k with upward revisions for the figures for the last couple of months, also the closely followed unemployment rate dropped to 7.5%, its lowest since December 2008. These numbers saw the dollar rallied on the back of the announcement but was halted in its tracks later in the afternoon as the ISM non-manufacturing PMI was weaker than expected. As such, they note that the market has become less controlled by data releases as investors obsess over central bank activity but Friday’s volatility could be a telling sign that investors are changing focus back towards fundamentals; something the Fed have been encouraging for some time.