The pairing reached to a 30 month high on Friday, after a report from the European Central Bank indicated that banks in the euro area are set to pay back a large portion of its emergency three-year loans shortly. Another factor was the fact that the ECB’s decision to refrain from any policy tightening dampened expectations for further easing by the bank. However it started to decline after positive figures from the Non Farm Payrolls were released showing the US economy accomplished 175,000 jobs in February, a moderate turnaround from two disappointing months when negative figures was blamed on severe winter weather. The Labor Department was revised higher than expected, by 25,000, the number of net positions created in December and January, softening the picture of a sharp downturn in the US jobs market at the height of the winter. As a side note the positive figures indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed heavily on the performance of the dollar. Financial data to be released today is the French Industrial Production m/m at 7.45am (GMT). Today EUR/USD has a support of 1.3725 and a resistance of 1.3892
The pound moved lower against the dollar on Friday after data showed that the U.S. employment report for February was higher than forecast, improving the outlook for the economic recovery. The U.S payroll employment for February rose 175,000 a lot more than expected following gains in January of 129,000 and December of 84,000. Market analysts had expected a gain of 150,000. This positive upward trend in payrolls provided some encouragement following the bad effect of extreme winter weather. The jobs report calmed concerns over soft U.S. employment and other economic data seen in the past few months. The strong figure indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed on the value of the dollar. Also on Friday the GBP fell 0.06% against the USD and closing 1.6731, after the Bank of England reported that consumer inflation expectations in the UK economy for next 12 months fell to 2.8%, from an earlier expectation of 3.6%. Event to take note on today are FOMC member Plosser speaks at 11.15am (GMT) and MPC member Bean speaks at 2.15pm (GMT). Today GBP/USD has a support of 1.650 and a resistance of 1.6765
The pairing fell all week as safe haven moves came swiftly to a stop after Russia ordered troops back to their bases and said these were only military exercises. A Japanese key index designed to reflect the current state of the economy rose to its highest level in six years in January as businesses bolstered production ahead of next month’s consumption tax hike, the government reported on Friday. Friday’s news from the US, with the Non-farm payroll numbers being recorded above expectation,s had a positive effect on the U.S dollar which jumped a six week high against the Japanese yen. Japanese economy grew less than expected in the fourth quarter: Japanese GDP grew by 0.7 % in the fourth quarter compared with the third quarter, fewer early assessment of 1 % growth, and economists forecast growth of 0.9 %. Despite the USD/JPY rally on Friday the subsequent retreat suggests consolidation. Today USD/JPY has support of 102.8 and resistance of 103.40
March 10, 2014 – Forex News
Hot Asset For Today: USD/JPY
The pairing reached to a 30 month high on Friday, after a report from the European Central Bank indicated that banks in the euro area are set to pay back a large portion of its emergency three-year loans shortly. Another factor was the fact that the ECB’s decision to refrain from any policy tightening dampened expectations for further easing by the bank. However it started to decline after positive figures from the Non Farm Payrolls were released showing the US economy accomplished 175,000 jobs in February, a moderate turnaround from two disappointing months when negative figures was blamed on severe winter weather. The Labor Department was revised higher than expected, by 25,000, the number of net positions created in December and January, softening the picture of a sharp downturn in the US jobs market at the height of the winter. As a side note the positive figures indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed heavily on the performance of the dollar. Financial data to be released today is the French Industrial Production m/m at 7.45am (GMT). Today EUR/USD has a support of 1.3725 and a resistance of 1.3892
The pound moved lower against the dollar on Friday after data showed that the U.S. employment report for February was higher than forecast, improving the outlook for the economic recovery. The U.S payroll employment for February rose 175,000 a lot more than expected following gains in January of 129,000 and December of 84,000. Market analysts had expected a gain of 150,000. This positive upward trend in payrolls provided some encouragement following the bad effect of extreme winter weather. The jobs report calmed concerns over soft U.S. employment and other economic data seen in the past few months. The strong figure indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed on the value of the dollar. Also on Friday the GBP fell 0.06% against the USD and closing 1.6731, after the Bank of England reported that consumer inflation expectations in the UK economy for next 12 months fell to 2.8%, from an earlier expectation of 3.6%. Event to take note on today are FOMC member Plosser speaks at 11.15am (GMT) and MPC member Bean speaks at 2.15pm (GMT). Today GBP/USD has a support of 1.650 and a resistance of 1.6765
The pairing fell all week as safe haven moves came swiftly to a stop after Russia ordered troops back to their bases and said these were only military exercises. A Japanese key index designed to reflect the current state of the economy rose to its highest level in six years in January as businesses bolstered production ahead of next month’s consumption tax hike, the government reported on Friday. Friday’s news from the US, with the Non-farm payroll numbers being recorded above expectation,s had a positive effect on the U.S dollar which jumped a six week high against the Japanese yen. Japanese economy grew less than expected in the fourth quarter: Japanese GDP grew by 0.7 % in the fourth quarter compared with the third quarter, fewer early assessment of 1 % growth, and economists forecast growth of 0.9 %. Despite the USD/JPY rally on Friday the subsequent retreat suggests consolidation. Today USD/JPY has support of 102.8 and resistance of 103.40
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