Dollar Versus Gold – War to come?
June 1, 2011 by admin
Filed under Trading in the Market
Just before the North American session could kick off this morning, figures released from ADP Employer Services threw the trading world into some chaos. The figures, showing the number of jobs that companies have added since September 2010, showed that only 38,000 jobs were added in May 2011, which is the smallest increase that the employment market has seen in nearly a year.
With a Bloomberg News survey which had called for an increase of 175,000 in May, now proved disastorously wrong the dollar took a nose dive and found itself following the Dollar Index which lowered itself to 9527.34 from a previous figure of 9547.09.
As traders turn their attention to Friday’s government labour report, they appear to be taking a more cautious approach, favouring the unemployment rate to remain above the 9% level. The disappointing outcome from todays figures could spell another round of quantitative easing once we reach the end of June (Fed Res second round of stimulus ends), which would only serve to increase gold prices and those other assets significantly.
