DislikedHere's a few questions for people interested correlations or how basic fundies affect the market and where the money flows etc:
1. Why did the NFP numbers cause stocks to fall?
2. What reaction did this broadly cause in FX majors (not each individual one...collectively) and why?
3. What reaction broadly occurred on the USD and why?
4. Could you have used this knowledge together with technical analysis to take some decent probability trades after NFP?
Not necessarily one right answer for all of these i.e. many views could be correct for some...Ignored
NFP numbers were largely as expected (according to FF anyway), with a slight improvement in jobless numbers. This should be good for the US economy, and thus the Dollar, but as The Bernanke has mentioned, he wants a recovery in jobs before bringing QE to a close, and raising rates. So I'm guessing stocks fell on the possibility of one/both of these things occuring at some point.
The Yen and Franc seemed to strengthen after NFP, as the stock market sold off, which usually means risk aversion, but if the US economy is looking healthier, not sure why this would happen, other than the obvious strife in the middle east, which also saw oil rising.
Thinking about it, it all looks simply down to the middle east problems. Oil up, stocks down, Yen/Franc up. The Dollar didn't really react much, other than to the usual illiquidity.