Asian Session – US dollar mixed going into November employment report
December 6, 2013 7:24 am
The euro backed away a little from the 5-week high achieved during the previous US session, losing 0.09% against the dollar to trade at 1.3655. 1.3677 was the high achieved.
The euro was boosted by the relatively sanguine tone of ECB President Mario Draghi during the previous day’s press conference, in which he did not appear in a hurry to undertake any fresh stimulus measures and did not float any possible specific measures.
Draghi’s vague talk about the possibility of future stimulus emboldened euro bulls.
The euro rose against the yen, climbing 0.28% to 139.5; very near its 5-year high of 140.01.
The US dollar also bounced back against the Japanese yen, rising by 0.38% to 102.17, closing in on the 103.38 high registered earlier in the week.
According to analysts, it was not clear that a strong employment report would boost the dollar against the yen, since a strong report could spark speculation of early tapering and hence risk aversion, which could in turn help the yen.
During the previous day, two regional Fed Presidents expressed their support in favor of setting a schedule for winding down the QE asset purchase program. Clarity and predictability was something both speakers had mentioned in the way that the Fed should handle this issue.
The consensus view of most US economists on the US economic situation seems to be that although strong job gains are expected to be announced later in the day in the November employment report, the Fed will likely refrain from tapering until March.
The forecast for the employment report calls for the creation of 180 thousand jobs and the unemployment rate to drop to 7.2%.
The euro backed away a little from the 5-week high achieved during the previous US session, losing 0.09% against the dollar to trade at 1.3655. 1.3677 was the high achieved.
The euro was boosted by the relatively sanguine tone of ECB President Mario Draghi during the previous day’s press conference, in which he did not appear in a hurry to undertake any fresh stimulus measures and did not float any possible specific measures.
Draghi’s vague talk about the possibility of future stimulus emboldened euro bulls.
The euro rose against the yen, climbing 0.28% to 139.5; very near its 5-year high of 140.01.
The US dollar also bounced back against the Japanese yen, rising by 0.38% to 102.17, closing in on the 103.38 high registered earlier in the week.
According to analysts, it was not clear that a strong employment report would boost the dollar against the yen, since a strong report could spark speculation of early tapering and hence risk aversion, which could in turn help the yen.
During the previous day, two regional Fed Presidents expressed their support in favor of setting a schedule for winding down the QE asset purchase program. Clarity and predictability was something both speakers had mentioned in the way that the Fed should handle this issue.
The consensus view of most US economists on the US economic situation seems to be that although strong job gains are expected to be announced later in the day in the November employment report, the Fed will likely refrain from tapering until March.
The forecast for the employment report calls for the creation of 180 thousand jobs and the unemployment rate to drop to 7.2%.
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