Euro runs into the wall with the employment report

The quite decent monthly employment report on Friday brought the euro to a screeching halt. No longer is it "clear" that the Federal Reserve will continue to cut interest rates. The December euro futures contract fell to $1.4158 on Friday from $1.4293 a week ago, a loss of 1.33 cents.

Where the euro goes from here is up in the air since we no longer have a solid consensus on what the Fed will do with interest rates, where the overall U.S. economy is headed, or how deep-pocketed the speculators are who have been pushing up the euro.

As far as where speculators think the euro may be headed, euro futures out at March 2009 were only at $1.4217 on Friday, so there isn't exactly a lot of "slam dunk" enthusiasm for betting on an ongoing upwards trend, so far.

-- Jack Krupansky