6 September, 2013
There was a significant amount of economic data from Europe on Friday which knocked around the euro and sterling in the European session but in reality the markets are just on edge waiting for the all-important nonfarm payrolls later in the U.S. session.
The Fed will watch closely as job creation is key for their decision on tapering.
The British pound had a big drop following worse than expected trade balance data and manufacturing data.
GBPUSD fell 45 pips form the London open to a session low of $1.5563 but buying on dips helped it bounce a bit going into the U.S. session.
Euro slipped for a second day versus the dollar to a low of $1.3104 where it found support. A weak German industrial production data weighed on the single currency which fell yesterday after Mario Draghi’s dovish comments.
The U.S. dollar reversed gains made against the yen and fell back below the key 100 yen level as investors took opportunity to book profits ahead of the U.S. jobs data. Any weak number could knock USDJPY lower than the 99.49 low reached in the European session today.
The greenback performed even worse against loonie (Canadian dollar) as USDCAD extended lower to $1.0437, down 45 pips. The pair is down 100 pips on the week.
Canadian jobs data are also due at the same time the U.S. jobs will be released at 8:30 am New York time.
U.S. nonfarm payrolls are expected to increase by 180,000 from 162,000, while in Canada, 21,200 new jobs are expected to be added, up from a previous decrease.
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...