Asian Session – Dollar regains momentum ahead of nonfarm payrolls
January 10, 2014 8:01 am
The US dollar regained its bullish momentum against the yen as markets look ahead to the nonfarm payrolls report due later in the trading day.
The dollar had a volatile day on Thursday as focus switched from the European Central Bank and Bank of England policy announcements, and then US jobless claims data.
As expected, both central banks kept their monetary policies unchanged, with the ECB rate at 0.25% and the BoE rate at 0.50%. The pound was somewhat steadier after the policy announcement as there was no accompanying statement issued after. Cable traded a tight range between 1.6471 and 1.6481.
However, the euro was more volatile especially after ECB Chief Mario Draghi began to speak after the policy announcement. Draghi took on a slightly dovish tone and said that growth risks in the Euro zone remained to the downside. He pledged that the ECB’s monetary policy stance will remain accommodative for as long as necessary.
Also Draghi suggested that the ECB would take action should deflation become a real risk. The markets interpreted this as meaning a rate cut. This sent the euro lower.
In today’s Asian session the euro bounced to 1.3610, gaining 0.03%, moving off yesterday’s low of 1.3547. The euro also climbed against the yen, up 0.16% to 142.83.
The dollar gained 0.14% against the yen in Asia to end at 104.97, moving off yesterday’s low of 104.56.
Investors are turning their focus to the all-important US nonfarm payrolls report due in the US session. Forecasts are for an increase from November’s 203,000 jobs to around 196,000 and 200,000 in December. Yesterday’s jobless claims fell to 330,000 from 345,000, beating forecasts of 337,000.
Looking ahead to the European session, UK manufacturing production data are due for release while final GDP data for the Eurozone are due for Q4 of 2013.
The US dollar regained its bullish momentum against the yen as markets look ahead to the nonfarm payrolls report due later in the trading day.
The dollar had a volatile day on Thursday as focus switched from the European Central Bank and Bank of England policy announcements, and then US jobless claims data.
As expected, both central banks kept their monetary policies unchanged, with the ECB rate at 0.25% and the BoE rate at 0.50%. The pound was somewhat steadier after the policy announcement as there was no accompanying statement issued after. Cable traded a tight range between 1.6471 and 1.6481.
However, the euro was more volatile especially after ECB Chief Mario Draghi began to speak after the policy announcement. Draghi took on a slightly dovish tone and said that growth risks in the Euro zone remained to the downside. He pledged that the ECB’s monetary policy stance will remain accommodative for as long as necessary.
Also Draghi suggested that the ECB would take action should deflation become a real risk. The markets interpreted this as meaning a rate cut. This sent the euro lower.
In today’s Asian session the euro bounced to 1.3610, gaining 0.03%, moving off yesterday’s low of 1.3547. The euro also climbed against the yen, up 0.16% to 142.83.
The dollar gained 0.14% against the yen in Asia to end at 104.97, moving off yesterday’s low of 104.56.
Investors are turning their focus to the all-important US nonfarm payrolls report due in the US session. Forecasts are for an increase from November’s 203,000 jobs to around 196,000 and 200,000 in December. Yesterday’s jobless claims fell to 330,000 from 345,000, beating forecasts of 337,000.
Looking ahead to the European session, UK manufacturing production data are due for release while final GDP data for the Eurozone are due for Q4 of 2013.
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