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Market Update – February 7, 2018 | - ForexGator.com
The second trading month of the year started with a bang: the U.S. stock market crashed, sending the DJIA down in a vicious spiral. The volatility index (VIX) experienced high levels and the DJIA dropped a record number of points in one single day. Such a tumble couldn't go unnoticed on the Forex market. In a blink of an eye, the JPY flexed its muscles, showing the equities/JPY correlation is alive and kicking. And yet, no important new caused the market reaction. Or, so it seems at the first glance. NFP and Average Hourly Earnings Last Friday the NFP largely beat expectations. At this point in the tightening cycle, the job creation should have been slower. Yet, it the U.S. economy keeps adding jobs at a fast pace. While this was a positive news for the dollar and the stock market, the main news of the day was the Average Hourly Earnings releases. It increased dramatically, sending fears that inflation will spiral out of control. Still, the