Asian Session – Euro consolidates post-Draghi losses, focus shifts to US jobs data
May 3, 2013 7:27 am
The euro stabilized against the dollar after taking a nosedive in reaction to the European Central Bank Chief’s hints on negative interest rates.
Mario Draghi spooked investors during his post ECB-policy meeting news conference on Thursday when he mentioned that the central bank would consider a deposit rate below zero, meaning that euro zone banks would have to pay to keep their funds at the ECB.
The euro fell sharply after Draghi’s comments after having being lifted on news that the ECB cut the main refinancing rate to a record low 0.5 percent.
EURUSD was boosted to $1.3217 but soon plunged to a low of $1.3036. The euro consolidated around $1.3060 in the Asian session today.
EURJPY traded a tight range in Asia around 128.00 yen, after falling from yesterday’s high of 129.89 yen.
GBPUSD tracked the broadly weak euro lower and fell from a high of $1.5589 to steady around $1.5530 this morning. The pound was buoyed on Thursday by surprisingly better UK construction PMI numbers.
USDJPY jumped to 98.38 yesterday after better than expected US initial jobless claims the data. Investors were relieved that the US labor market is showing signs of recovery.
Focus now shifts to the more important US nonfarm payrolls data due later today. A strong number will likely propel the dollar higher and this will pin down euro.
Gold benefitted from safe haven flows after the ECB announced it lowered interest rates. The precious metal gained over $20 and rose to a high of $1,477 in Asia today.
The euro stabilized against the dollar after taking a nosedive in reaction to the European Central Bank Chief’s hints on negative interest rates.
Mario Draghi spooked investors during his post ECB-policy meeting news conference on Thursday when he mentioned that the central bank would consider a deposit rate below zero, meaning that euro zone banks would have to pay to keep their funds at the ECB.
The euro fell sharply after Draghi’s comments after having being lifted on news that the ECB cut the main refinancing rate to a record low 0.5 percent.
EURUSD was boosted to $1.3217 but soon plunged to a low of $1.3036. The euro consolidated around $1.3060 in the Asian session today.
EURJPY traded a tight range in Asia around 128.00 yen, after falling from yesterday’s high of 129.89 yen.
GBPUSD tracked the broadly weak euro lower and fell from a high of $1.5589 to steady around $1.5530 this morning. The pound was buoyed on Thursday by surprisingly better UK construction PMI numbers.
USDJPY jumped to 98.38 yesterday after better than expected US initial jobless claims the data. Investors were relieved that the US labor market is showing signs of recovery.
Focus now shifts to the more important US nonfarm payrolls data due later today. A strong number will likely propel the dollar higher and this will pin down euro.
Gold benefitted from safe haven flows after the ECB announced it lowered interest rates. The precious metal gained over $20 and rose to a high of $1,477 in Asia today.
Related Posts: