The US nonfarm payroll report for June 2008 showed a loss of 62,000 jobs. The unemployment rate continued to hold steady at 5.5 percent. April and May payroll numbers were revised down by a total of 52,000.
The currency markets reacted with a surprising dumping of dollars shorts. The dollar pushed back against the Euro gaining an immediate 150 pips! It appears that the payroll numbers were not as bad as the market expected. The dollar has been threatening to break out of it’s recent ranges to the downside, but with today’s action, it appears that it may just turn around and continue to do the status quo.