The U.S. Jobs Report Accomplishes What Draghi Did Not-- A Lower Euro

If Mario Draghi, and his ECB, backed away from presenting the EURO with another bearish catalyst yesterday (no QE yet), then today's stronger than expected U.S. Jobs Report accomplished the same mission: a weaker Euro via money flowing into U.S. Dollars.

The DXY rocketed to a new 4-year high at 86.75 on the back of a strengthening U.S. economy.

The prospect of strong U.S. growth, however, does not translate into elevating fears of inflation.

Just the opposite reaction is unfolding, as Gold breaks below $1200 support after holding that level for over a week.

Gold is now just 1.3% from testing its multi-year low at $1180, which, if violated and sustained, points to $1120-$1090 to complete the breakdown from the June 2013-Sept 2014 sideways digestion period.