There was no major change in the currencies market from the US labor report which has shown a slight better than expected US non-farm payroll figure of August coming at -216k and the market was waiting for -233k revising July figure to -463k from -443k with a rise of the US unemployment rate to 9.7% in August from 9.4% in July and an increasing of the average hourly earnings by .06$ to be 18.65$. The data have show that the US labor market is still struggling looking for the demand which can spur confidence and hiring back again. we have seen earlier this week that the US Q2 productivity has been revised up to 6.6% from 6.4% but the ADP employment figure of August has come worse than the market expectations of -250k at -298k too and these data show that there is still worries about hiring but the current labor unit is high utilized meeting an increasing of the demand which can be hopeful for the recovery

but the investors are really in need to watch the recent improving of the economic performance impact on the labor market after US ISM manufacturing index had come above 50 finally in August reaching 52.9 which is the highest figure since June 2007 reflecting an expansion in the manufacturing sector and we have seen this week too a continuous improving of the housing market conditions as the US pending home sales of July have come up for the sixth consecutive month by 3.2% after rising of the US new home sales of July too by 9.6% m/m which shows that there is a new demand growing in a faster pace than what was expected but the question now is this is reliable enough to move the growth up in a sustainable way? As Ben Bernenke has hinted recently when he indicated that the worst of the credit crisis is looking behind of us currently and the focusing is now on the current obstacles in front of a reliable economic growth which can produce jobs again and this is the most important waited reason by the Fed's president to start eliminating the fed's quantitive easing steps which is crucial to the forex market.

Best wishes

FX Consultant

Walid Salah El Din
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