Yesterday, the weekly data on the labor market in the U.S. exceeded economists expectations and this was attractive to the market and Asian markets, which have continued their gains. Chinese stocks are bucking and decreased after the Chinese New Year holiday. Concerns about the faltering financial system of China and the increasing risk loans are still on the table, as well as negative feelings about the current outlook for emerging markets.

U.S. labor market is positive

The U.S. Department of Labor announced yesterday that approvals for unemployment benefits fell by 20,000 to 331,000 last week, the first time we’ve seen a decline this year. The predictions were that jobless claims were at 335,000. A report by Bloomberg News tells us also that the non-farm payrolls will be released today show that 180,000 new jobs added in January due to a surplus of 74,000 employees in the month of December. The experts evaluated this development as an acceleration of economic recovery. The unemployment rate is estimated to remain unchanged at 6.7 per cent, the lowest since 2008. This could spur the Federal Reserve to end its easing monthly by the end of 2014.

labor-market-survey

The yen rises, gold falls

In contrast to the previous days, the yen JPY has appreciated against most of the 16 most traded currencies and gold is advanced, while AUD, NZD and silver have fallen. JPY has gained 0.1 percent against the dollar, trading at 101.98 yen. The EUR / JPY has maintained its previous level at 138.60. Meanwhile, the euro has recovered 0.4 per cent against the dollar to 1.3592, the best result since January 23, after falling 0.7 percent the day before. Gold rose by 0.3 per cent and is now faced with an interesting weekly gain of 1.4 percent.

XAU / USD (4 hours)

From the end of December, gold has been mostly traded in a sideways trend between levels from 1231.50 to 1278.93. Currently, we see that the price is approaching the resistance level around 1260.74. All indicators are providing bullish signals slightly.

USD / JPY (4 hours)

Since our last analysis, this currency pair extended its losses within a bearish channel and fell support around 100.91 before recovering the upper channel line. According to MACD and CCI, could be seen of further gains if the couple were able to break its current channel through the upper channel line. Bollinger bands are expanding again.