U.S. Dollar Lower Before Non-Farm Payrolls

Yesterday, the EUR/USD dropped right after the European Central Bank announced that they would cut the interest rate from 0.25% to 0.15%. However, not long after the pair retraced all its losses and then rose due to worse than expected initial jobless claims data from the United States. Today, the pair is ranging ahead of US Nonfarm Payrolls data coming out at 12:30 GMT. Given the importance of this data for US monetary policy, the pair is unlikely to move significantly until this information is published. In the meantime, look for support at 1.3500 and resistance at 1.3667.

Yesterday, the USD/JPY went down due to worse than expected unemployment data. Even early this morning the pair continued downward after the Japanese leading index came out better than expected – pushing the yen higher. Recently, however, the pair has ceased its downward trajectory as Nonfarm Payrolls approaches. Like with the EUR/USD, large movement will be unlikely as all traders will be waiting for the results of today’s jobs report before they take serious positions. For now, look for support at 102.24 and resistance at 102.78.