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Friday’s session showed market participants that despite a gloomy employment report, the markets are still resilient to unpleasant data. Following the Bureau of Labor Statistic’s employment report, the major indices found support during the session and rallied higher throughout the last hour of the trading day. The S&P500 closed the session with a 0.29% while the Nasdaq closed higher by 0.74%. The unemployment report came out as expected, holding at a double digit figure of 10%. The NFP report shocked economists and disappointed Dollar bulls as the U.S economy showed that it had shredded 85k, compared to expectations of a ‘no change’. Employment fell in construction, manufacturing and wholesale trade, while temporary help services and health care added jobs. One must note that the worse than expected NFP result will probably put further pressure on the Fed and delay any rate hikes for the time being. This could have a direct affect on the Dollar and cause further weakness. Monday opened on a positive note as the Asian markets climbed higher. According to Bloomberg news China’s exports surged, which signaled that the global economic demand is picking up. Their exports climbed 17.7% from a year earlier, the first increase in 14 months. The Nikkei index is currently trading with a 1% gain, while the MSCI increased by over 1.5%. EUR/USD climbs on Dollar WeaknessDollar weakness sparked additional buying Monday morning, sending Dollar counterparts to higher levels. The EUR/USD broke out of its range and climbed to a two week high. The AUD/USD soared higher, but is now trading beneath major resistance of $0.9324. 
For a full chart analysis on the majors, please see our technical chart page. Market Data to Watch Out ForOn the economic front, investors will turn to data from Canada and Japan today. Canada’s data will be scrutinized, especially as the USD/CAD is trading at low levels and has recently broken trend line support. Housing starts are expected to show an increase of 160.00k, compared to last month’s 159.00k. Building permits could decrease by -1%, which will be a major disappointment compared to last month’s figure of 18% Over in Japan, the Bank lending and current account figures are scheduled to be released
To view the full economic calendar click here.
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