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Forex pairs in this Article » EUR/USD, GBP/USD (San Francisco) - A weaker than expected nonfarm payrolls in September put the US Dollar under pressure as investors assumed that the Fed is far from taper its QE program. The EUR/USD climbed to highs since November 2011 at 1.3791 while the GBP/USD tested 1.6250 region.

The delayed September nonfarm payrolls posted an increase by 148,000 jobs, unemployment rate fell to 7.2% while the participation rate remained steady at 63.2%. In addition, net long term TICS decreased to $-8.9B from previous reading of $31.0B today. As chief analyst Valeria Bednarik said in a recent report: "The first indicates that QE is here to stay, sending S&P to a fresh all time high, while the second reflects the outflows from US are even larger than initially suspected."

Later on the day, a Reuters survey reported that a majority of the primary dealers in the US government securities see the Fed tapering in March of 2014. 2 dealers say January and 2 forecast any time in Q1. As Jamie Coleman from FXbeat confirmed in a recent news, "the consensus is for a taper of $15 bln to $70 bln in bond buys from the present $85 bln/month pace."

Meanwhile, the buying interest in the EUR/USD remains intact with the EUR/USD hovering over 1.3780. "Dollar seems condemned to continue falling across the board, with temporal strength in the US currency seen just as selling opportunities," adds Bednarik as the hourly chart hints a pause as the pair is now in overbought field. However, the 4-hour chart remains bullish.

The GBP/USD Jumped from 1.6120 to test 10 month highs reached early October around the 1.6250 area. The Cable closed the day at 1.6230. The GBP/USD's picture is pretty similar to the EUR/USD with the pair moving in overbought territory in the 1-hour chart but bullish tone remaining in wider timeframes. The Upwards momentum is healthy with the pair focusing to the 1.6300 area.

Main headlines in the American session:

US: Nonfarm payrolls at 148K in September

US Unemployment Rate declines to 7.2% in September from 7.3% in August

US: Average Hourly Earnings up 0.1% in September

Gross says Fed won't taper soon; no rate hike until 2016

US: Net Long-Term TIC Flows fall to $-8.9B in August

US: Construction Spending rises 0.6% in August

US: Richmond Fed Manufacturing Index rises in October against forecasts

Survey says: Taper no earlier than March

Wall Street assumes tapering is out of the table and keeps its mojo
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