When good news is bad news!
On Friday, U.S. employment figures were more than twice as high as expected. The unemployment rate also fell, albeit by only one decimal place. Still, U.S. stocks (as measured by the S&P 500 and Nasdaq) fell. Why should it be "bad" for U.S. companies that more Americans have jobs and disposable income?This is a recurring phenomenon in financial markets that can confound trading strategies. It is not unique to the United States. In Europe, indices have reacted differently, but that could change. Since there is a direct correlation between stocks, commodities and foreign exchange, this could also affect us currency traders.