Currencies Await NFP

The EUR/USD is ranging today after dropping substantially due to the European Central Bank’s decision to cut the interest rate and provide more stimulus. Now, the pair is ranging in anticipation of US Nonfarm Payrolls data set to come out at 12:30 GMT. Also note that Eurozone GDP data will come out at 9:00 GMT. Until these events occur, the pair is unlikely to see substantial movement. Look for support at at 1.2919 and resistance at 1.3153.

The USD/JPY is also ranging ahead of Nonfarm Payrolls data. Though long term pressure on the pair is bullish due to US monetary policy and the plans by the Fed to raise the interest rate soon. However, the Fed’s action in this regard is dependent on better than expected labor market data – of  which the NFP report is important factor. Thus, the USD/JPY will be quiet until traders have an idea of what the US employment situation is like. Look for support at 104.73 and resistance at 105.69.