Unemployment Rate Rose To 6.7 Percent, The Highest Since 1993

High Unemployment and Low Non-Farm Figures might lower the USD. The U.S. Dollar experienced heavy losses against its main rival currencies in Thursday's trading session. This was amid the slash of Interest Rates by Official Bench Institutions in a measure described as a proactive step by analysts to stave off the global recession.

The unusually large Interest Rate cut made by the European Central Bank (ECB) of 0.75 basis points made it clear that the ECB is trying its best to boost the Euro-Zone economy. The EUR was bullish as a result of the cut yesterday, and rallied against all its major currency counterparts. The EUR/USD currency pair traded as high as $1.28, almost 3 cents higher from the session low of 1.2550.

Despite yesterday’s late recovery, the UK’s leading index has halted a three-day rise after investors failed to react positively to the BoE’s base-rate cut. Markets worldwide have shown losses, and the US markets seem poised to finish a fourth week in decline, opening down this morning amidst rising redundancy rates and low payroll figures.

The yen had rallied to six-week highs against the dollar immediately following the U.S. non-farm payrolls report, reviving speculation the Bank of Japan, also battling a recession, may intervene in the market to temper the Japanese currency's strength, which has hurt the country's exports. As the global economy worsens, analysts said investors will continue to snap up the U.S. dollar and yen as they pare back their holdings of risky trades financed by both currencies' cheap rates.

Investors, fearful that the job losses will cause consumers to cut back spending and make the profit outlook more dire, sold stocks more broadly, but the energy sector was the biggest casualty. In fact, despite the increasingly effort from central banks and government to tackle our global situation the picture of the world's economical future look a little bit cloudy.