After small correction yesterday the dollar again became stronger. After unexpectedly positive data on ISM index this time traders were pleasantly surprised by data on the labor market. Unexpectedly positive indicators of week jobless claims caused the next wave of dollar demand in the market.

According to the US Bureau of Economic Analysis the jobless claims decreased by 21000 to 305000 for a weekend on April, 30th. 4 week moving average fell by 4500 to 328 750. These data came into conflict with market expectations - experts expected growth of claims by 1000 for last week in comparison with previous ones.

Positive dynamics of the labor market was observed in April during all month on claims reports of Department of Labor and in March according to the same Department the index of unemployment dipped to record 4,4% per annum.

Industrial activity contrary to market expectations dropped by insignificant value - 0,4 % whereas analysts expected decrease in this indicator by 1,3 %. That also affected a positive spirit of dollar bulls.

Economists predicted growth by 0,8 %. Labor costs in 1 quarter were up 0,6 % after growth by 6,2 % in 4 quarter, 2006, much more below predicted 1,5 %.

Positive data on ISM service index affected positive spirit of the market. Value of the index demonstrated rise of activity in services sphere in April up to 56,0 points, by 3,6 points above data for the last month, and by 2 points above predicted values.

Growth of productivity as well as rise in business activity in production and in services sector show that recession in the market of the real estate of the USA and in the building industry connected with it did not influence strongly as a whole on the American economy contrary to pessimistic forecasts of many analytical agencies.

Today the issue of the significant report of the US Department of Labor on employment in April, 2007 is expected.

Let's remind that the previous report demonstrated a positive on indicators of employment:

Rise in of payrolls increased up to 180 000 in March from revised113 000.

And the total rate of unemployment went down to record marks. Unemployment Rate dipped to 4,4 %.

Today there is an opportunity to open intraday positions on results of an issue of news, on the following conditions. Shorts on euro and pound sterling if Nonfarm Payrolls is better than the previous values, and Unemployment Rate is at a former level or decreases.

Longs on euro and pound sterling if Nonfarm Payrolls is worse than the previous values and forecasts, and Unemployment Rate is at a former level or increases.

If Nonfarm Payrolls are in a range of above expectations, but worse than the previous data, or Unemployment Rate - is in the contradiction with NP data we remain outside the market.

On the open positions: the euro position was closed in profit according to stop, on pound sterling position was kept – it should be kept, stop at 1,9975, if data on Employment show a negative close it according to the market and on the contrary we leave positions if data show a positive.

We open according to former tactics two orders simultaneously, one at short profit at 40 points, the second is placed in break-even with minimal profit.