European Session – Consolidation as markets await nonfarm payrolls
April 5, 2013 12:13 pm
Currency markets were quiet during the European session on Friday as many investors preferred to wait on the sidelines ahead of key US economic data. The nonfarm payrolls report is due at 1230GMT.
Consensus is for a drop in job creation, with estimates ranging from 198,000 to 200,000, lower than the previous month’s number of 236,000. The official US unemployment rate is expected to remain unchanged at 7.7 percent.
Overall market sentiment appears to be relatively upbeat, with most major currency pairs remaining in consolidation mode.
Euro held onto gains against the dollar, trading above the key level of $1.2900. EURUSD hit a high of $1.2948 in late US session trading yesterday, following the European Central Bank’s decision to keep rates unchanged at 0.75 percent.
Dollar gave back some gains made against the yen due mostly to profit taking and positioning ahead of the nonfarm payrolls report today.
USDJPY spiked to a new 3-1/2 year high of 97.18 in the Asian trade, and eased down to 95.84 in Europe.
EURJPY hit 125.57 yen in Asia and had a set back in the European session to 123.84 yen.
Yen is expected to weaken further going forward as the Bank of Japan yesterday pledged to adopt aggressive monetary stimulus, aiming to inject about $1.4 trillion into the economy in less than two years.
Currency markets were quiet during the European session on Friday as many investors preferred to wait on the sidelines ahead of key US economic data. The nonfarm payrolls report is due at 1230GMT.
Consensus is for a drop in job creation, with estimates ranging from 198,000 to 200,000, lower than the previous month’s number of 236,000. The official US unemployment rate is expected to remain unchanged at 7.7 percent.
Overall market sentiment appears to be relatively upbeat, with most major currency pairs remaining in consolidation mode.
Euro held onto gains against the dollar, trading above the key level of $1.2900. EURUSD hit a high of $1.2948 in late US session trading yesterday, following the European Central Bank’s decision to keep rates unchanged at 0.75 percent.
Dollar gave back some gains made against the yen due mostly to profit taking and positioning ahead of the nonfarm payrolls report today.
USDJPY spiked to a new 3-1/2 year high of 97.18 in the Asian trade, and eased down to 95.84 in Europe.
EURJPY hit 125.57 yen in Asia and had a set back in the European session to 123.84 yen.
Yen is expected to weaken further going forward as the Bank of Japan yesterday pledged to adopt aggressive monetary stimulus, aiming to inject about $1.4 trillion into the economy in less than two years.
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