USD Trading Outlook (09-04-2012)

U.S. Dollar Trading (USD) disappointing US Jobs data sent most markets sharply lower with risk taken off the table Friday night. The chances of QE3 increased reversing the post FOMC minutes USD/JPY rally and we saw fresh month lows under Y82. The Euro and Aussie fell as safe haven demand for the USD outweighed the change in US monetary policy expectations as evidenced by the drop in long term US bond yields.March NonFarm gained 120k vs. 203k expected. Looking ahead, March Employment Trend previously at 107.5.

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