1st on Forex: Fed Cuts Rates - Jobless Grows

When Bad News is Good

The US Dollar rallied Friday morning as the Non-Farm Payrolls Report - NFP showed a net loss of only -20,000 jobs. This negative growth of jobs was a positive surprise as it was much better than the expected job loss range of -150,000 to -25,000K .

Euro Double Bottoms at 1.5400 - click to enlarge chart

Gold and Oil Up - Despite Dollar Rally

Usually we see a very clear inverse correlation between the US Dollar vs. Oil and Gold - However as of this posting Oil is up over a Dollar at 113.73 and Gold is Up at $855 - So go figure. Yesterday Treasury Secretary Henry Paulson stated once again his "long term" strong dollar policy. Reuters is quoting Paulson saying, "I'm a strong dollar man" - please....

Planned Confusion: Now You See It... Now You Don't

15 minutes before the NFP report the Fed announced that in conjunction with the ECB and the Swiss National Bank they increased their liquidity arsenal from $50 to $75 Billion available through the TAF or Treasury Auction Facility. That's an an extra $25 Billion between friends! They are also increasing the "Frequency" of the auctions. This unexpected announcement caused some confusion to an already tense trading world awaiting the NFP. Was this timing planned? The FED clearly watches CNBC for direction (not to mention the Futures) - perhaps they wanted some attention just before NFP? I think they should pay attention (and a consulting fee) to Rick Santelli :>)

Waiting Game For Clarity? Read - Fed Minutes

Transparency used to be quite clear with Ben Bernanke, but it appears as if the guessing game is on! Wednesday the FOMC led by Ben Bernanke cut interest rates the expected .25 lowering it's bank rate to 2.0% - However, the Fed left no hint of future policy.. leaving my previous post on April 30th correct - stating that we will have to wait until May 21st for the FOMC minutes report to see what was discussed. Again - restating my previous post, the next FOMC scheduled announcement is not until June 25th - leaving the window open for surprise announcements.

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Jerry Furst is an active trader, educator, and Founder of Investors Education Network (IEN),He is available as a Mentor and Trading Coach to Select Clients Click Here for a Free Survey and 15 or 30 Minute Consultation.