6 September, 2013
The Asian session was quiet on Friday since there was not alot of economic news and most currencies consolidated while investors position themselves for key risk later when the U.S. nonfarm payrolls will be released.
After rallying above 100 yen on Thursday the dollar fell back below this key level to 99.70 on profit taking. Yesterday the USDJPY was propelled to a high of 100.18 after a string of upbeat U.S. economic data that showed an improvement in the services sector and also a drop in jobless claims.
Today’s nonfarm payrolls will be closely watched by the Fed since jobs are a key factor in their decision for when to being tapering stimulus (tapering will be dollar positive).
Economists predict that 180,000 new positions were created in August, up from an increase of 162,000 in July. They estimate the unemployment rate to remain steady at 7.4 percent, the lowest since December 2008.
On Thursday data showed that U.S. jobless claims that fell by 9,000 to 323,000 in the week ended August 31. In other currencies, euro and sterling were little changed after a huge tumble against the dollar yesterday.
The euro was under pressure after comments by ECB Chief Mario Draghi who signalled that the ECB was ready to lower rates if necessary.
EURUSD showed no clear direction after it dropped to $1.3110 yesterday and hovered close to this level throughout Asia. Focus is on the NFP data.
GBPUSD was little changed after its dip to $1.5572 yesterday, pinned down by a stronger dollar.
Yesterday the Bank of England announced it left the interest rate unchanged while leaving the asset purchase program steady.
The Asian session was calm as the economic calendar was light and most investors were positioning ahead of key risk events later this week, primarily the US nonfarm payrolls report on Friday...
The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday...
The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625
The dollar rose above 102.00 yen for the first time since May 29, while the euro flirted with the key $1.36 handle and hit a new four-year high within striking distance of 139.00 yen...
The best performing currency during Thursday’s Asian session was the Australian dollar which jumped against its US counterpart after strong Australian business spending data. Private Capital Expenditure increased by 3.6% quarter-on-quarter despite expectations for a decline by 1.1%...
The main currency of the day was the sterling which outperformed against the dollar and euro, as well as against the yen after being boosted by strong UK second quarter growth data...
The euro was stronger today particularly against the dollar and the pound. While there were no economic data releases today from the Eurozone to explain the move, there were some headline news which affected sterling and dollar...
The yen was supported by safe haven demand today after the release of a slightly dovish Bank of Japan policy meeting minutes. The minute from last weeks meeting showed some concern about Japans economic outlook and whether the central bank 2% inflation target could be met...
The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...