Forex: USD/JPY surges near daily high

Fri, Nov 5 2010, 16:06 GMT
http://www.fxstreet.com

FXstreet.com (Buenos Aires) – Dollar has accelerated higher across the board on London fix, favored by gold that’s falling below $ 1390/oz after setting a fresh record high at $ 1398/oz. Some profit taking at the end of the week plus position adjustment ahead of US data, are the main reason of current movements, after an eventful couple of hours that saw majors trading in tight ranges.

USD/JPY surged above 81.30, approaching to daily high at 81.46 set after better than expected US employment readings earlier today. Still limited to the upside by yesterday’s high around 81.65, pair has managed to slowly gain over this week, as the 80.30 15-year low posted past Monday, seems to have draw a bottom line, at least temporal. Still, market rumors suggest Japanese exports are ready to sell around the 82.00 level, while suspected stop losses lie above this one.

US stocks flat as 2-day rally begins to subside 

 

FXstreet.com (Barcelona) - A widely upbeat US NFP report helped to bring Wall Street back into positive territory, however equities still struggle near even as wave of optimism originating from the Fed´s QE2 announcement begins to fade. So far the DOW and NASDAQ trade slightly under by 0.02% and 0.05%, while the S&P holds onto modest gains of 0.27%.

A day after the DOW closed at its highest level since September 2008, investors are striking a cautious tone as markets appear to be overextended. Still, the recently released US jobs report showed the economy added jobs over October for the first time in 5 months, helping to slightly lift confidence even though the unemployment rate remains at 9.6%.

Among stocks in focus, Kraft Foods is showing a loss of nearly 3.0% after announcing disappointing 3rd quarter results on higher costs. On the flipside, Starbucks and Coventry Health Care are up around 4.0% and 5.0% respectively as both firms post strong quarterly financials.