A better then expected payroll number is forcing plenty of attitude adjustments.
Can an economic report hit one out of the park? If so, the payroll numberhomered this morning. The question now is how to use currencies to trade on it.
The odds of more quantitative easing by the Federal Reserve are almost certainly lower now that unemployment has fallen to 8.3 percent, says Marc Chandler, chief currency strategist at Brown Brothers Harriman. QE3 prospects are "not as imminent as some observers have argued," he says, especially since a strong jobs number suggest other economic indicators will be improving as well.
Kathy Lien, director of global research and analysis at GFT Forex, agrees. "The Federal Reserve had their gun locked and loaded and were ready to pull the trigger on QE3 if payrolls rose less than 100k, but after seeing today’s non-farm payrolls numbers, they will be able to save their bullets for an European implosion," she wrote in a note to clients.
So how do you trade the number? Just like Lien, you think about Europe.Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class. Talk back: Tell us what you want to hear about - email us at firstname.lastname@example.org.