Non-Farm Payrolls showed the U.S economy added 80k jobs last month, less than the 97k estimated by analysts. However, upside revisions to the previous 2 months reports means the U.S economy added a further 102k jobs, and the unemployment rate fell to 9.0%. The reaction in the dollar was muted. Traders supported the greenback a little higher in the aftermath, but it is debatable as to whether these moves are down to a slightly improving labour market, or risk aversion flows as progress on the European debt crisis remains slow.

The G20 meeting taking place in Cannes has provided the markets with few answers. Italy’s fiscal position has led to EU and IMF officials monitoring the steps being made by Italy to bring their fiscal house in order. Ideas of how to boost the funds available to distressed peripheral nations were discussed, but the lack of details on exactly how much, and where from, has failed to ease concerns over the Eurozone debt crisis. Acts to encourage investment form emerging economies such as China is yet to materialise as such moves face political resistance.

The Greek debacle continues to make headlines as reports now have Prime Minister George Papandreou facing a no confidence vote. The markets were initially shaken by plans for a referendum on the bail-out offered to Greece, only for Papandreou to reverse his decision today.

Price action in the FX markets simply reflects the complete turmoil and lack of decisions made by world leaders at the G20 meeting. Despite consistent acknowledgements that further funding for the Eurozone is required, leaders of global economies are reluctant to offer support without the necessary cuts being made.

Financial markets look set to close in negative territory as risk continues to be taken off the table. EUR/USD unsurprisingly is trading off the highs, whilst other risk related currencies such as the Australian dollar and New Zealand dollar have also experienced selling. The Euro had reacted positively to yesterday’s rate cut at Mario Draghi’s first press conference as ECB Chairman. Investors saw the rate cut as risk positive, a decision of implementing a more accommodative monetary policy to promote growth in the region.