FX Week 12 January 2014

FX Week

Emirates NBD was the best forecaster of USD/JPY, USD/CAD and AUD/USD in 2013 according to the latest Q4 Bloomberg FX survey.

USD gives back early 2014 gains
After starting 2014 strongly the USD gave back some of its gains following the weaker than expected December US jobs report. Non-farm payrolls showed a rise of just 74k during the month, less than half what was expected and the lowest since 2011. Admittedly the unemployment rate fell to 6.7% from 7.0% but this was because of another reduction in the participation rate – an expression of subdued confidence on the part of the working population. However, the weak payrolls figures were depressed by poor weather and are eventually likely to either be revised or prove to be only a temporary slowdown.
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