European Session – USDJPY rises ahead of Nonfarm payrolls
August 2, 2013 11:59 am
Risk sentiment remained buoyant in the European session on Friday in the build up to the U.S. nonfarm payrolls (NFP) report later.
The U.S. dollar is bullish heading to the New York open demand remains strong on the back of the U.S. ISM manufacturing data from yesterday. The upcoming NFP jobs numbers will be the main driver of markets today.
The recent array of stronger U.S. data fuels speculation that they would strengthen the case for the Federal Reserve to start tapering stimulus measures that have been weakening the USD.
The euro remains bearish against the dollar ahead of the nonfarm payrolls and under pressure since Thursday’s dovish comments from ECB President Mario Draghi. The ECB will likely keep interest rates at record lows for an extended period of time.
EURUSD has been confined in a range after yesterday’s large drop, seeing very little action outside of $1.3226, supported at $1.3188.
Sterling received a slight boost after the U.K. construction PMI increased, which comes a day after manufacturing PMI also showed an increase for July.
GBPUSD slightly managed to break out of the Asian session range, rising to a high of $1.5175 in early London session trading, moving off congestion area of $1.5100. The dollar made more evident gains against the yen. This pair will be closely watched for the nonfarm payrolls data. USDJPY rose to 99.84 by late European session trading. Since Thursday, the pair has climbed over 200 pips.
The key psychological 100 yen level is strong resistance and a disappointing NFP result could send the pair bouncing off and back to the downside.
Forecasts are for an increase of 185,000 jobs in July, following a 195,000 gain in June.
Risk sentiment remained buoyant in the European session on Friday in the build up to the U.S. nonfarm payrolls (NFP) report later.
The U.S. dollar is bullish heading to the New York open demand remains strong on the back of the U.S. ISM manufacturing data from yesterday. The upcoming NFP jobs numbers will be the main driver of markets today.
The recent array of stronger U.S. data fuels speculation that they would strengthen the case for the Federal Reserve to start tapering stimulus measures that have been weakening the USD.
The euro remains bearish against the dollar ahead of the nonfarm payrolls and under pressure since Thursday’s dovish comments from ECB President Mario Draghi. The ECB will likely keep interest rates at record lows for an extended period of time.
EURUSD has been confined in a range after yesterday’s large drop, seeing very little action outside of $1.3226, supported at $1.3188.
Sterling received a slight boost after the U.K. construction PMI increased, which comes a day after manufacturing PMI also showed an increase for July.
GBPUSD slightly managed to break out of the Asian session range, rising to a high of $1.5175 in early London session trading, moving off congestion area of $1.5100.
The dollar made more evident gains against the yen. This pair will be closely watched for the nonfarm payrolls data. USDJPY rose to 99.84 by late European session trading. Since Thursday, the pair has climbed over 200 pips.
The key psychological 100 yen level is strong resistance and a disappointing NFP result could send the pair bouncing off and back to the downside.
Forecasts are for an increase of 185,000 jobs in July, following a 195,000 gain in June.
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