by Forextvblog on February 8, 2010
The dollar climbed to an eight month high versus the EUR on Friday after the release of the U.S. jobs report. Credit concerns in Europe are weighing on the market as traders have moved out of riskier currencies and into the safety of the dollar and yen.
The greenback was significantly stronger across the board at the end of Friday’s trading with the lone exception coming against the Japanese yen. Driving the dollar higher was a combination of a strong U.S. jobs report and European economic sovereign debt fears.
At the end of Friday’s trading, the EUR/USD was trading at 1.3677 from an opening price of 1.3741. The pair shed 1.3% of its value from the previous week. The GBP/USD was also trading lower, trading at the price of 1.5639 after opening at 1.5733.
The release of the U.S. Non-Farm Jobs report by the department of labor helped to continue the bullishness of the dollar’s most recent rally. Despite the loss of 20K jobs for the previous month after expectations of an increase of 10K, the unemployment rate dropped to 9.7%. This shows U.S. employment conditions are improving from their low point in the recession. An expectation for the next month may be positive job growth.
The jobs report capped off a strong week for the dollar. This trend may continue for the upcoming trading week as traders will be looking for further positive economic data to verify the trend of an improving U.S. economy. Traders should be eyeing both Wednesday’s U.S. Trade Balance and Thursday’s Core Retail Sales numbers for confirmation.
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by Forextvblog on February 4, 2010
The USD was higher against its major counterparts Wednesday, heading toward its highest levels versus the EUR since last summer, following the release of better than expected economic data from the U.S.
The USD rallied against its major currency counterparts Wednesday following the release of stronger than expected economic data. The greenback erased overnight losses against the EUR after the release of a better than expected ADP Non Farm Employment report in January while the ISM Non-Manufacturing PMI showed expansion in service sector activity in the world’s biggest economy.
The ICE Dollar Index, which tracks the performance of the greenback against a trade-weighted basket of currencies, was at 79.360 from 79.000. the better than expected economic data boosted confidence ahead of the key Non Farm Employment report Friday, renewing expectations that the Federal Reserve will raise interest rates sooner than previously forecast. The EUR/USD was also pressured by revived concerns about the fiscal health of Greece as well as Portugal. The greenback also pushed to a two week high against the Yen.
Markets are now focused on the January Non Farm Payroll Data, due out Friday. The Labor Department is expected to show that the U.S. economy added 20,000 jobs last month, which would be the biggest gain since 2007. Today, the Unemployment Claims are due to be released at 13:30 GMT. This release might prove quite volatile for the USD, particularly if the result contrasts with Friday’s expectations.
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by Forextvblog on February 3, 2010
Australia surprised economists by holding interest rates steady after the market unanimously predicted an interest rate hike. Also a chain of positive news has helped spot crude oil prices jump over 5.5% during the past two days.
The dollar fell today versus the EUR as worries were reduced over Greece’s ability to repay its sovereign debt. However, trading ranges were tight as investors were hesitant to open such large positions prior to the release of the U.S. Non-Farm Payrolls report on Friday.
The EUR/USD rose to a closing price to day of 1.3965 after opening the day at 1.3914. The GBP/USD also rose to 1.5972 from 1.5929, while the USD/JPY fell to 90.36 from 90.76.
The USD gave back some territory today against the majors after its recent rally. Some of the appreciation of the EUR/USD may have been caused by traders taking profits from the recent decline in the pair.
U.S. economic data was positive today after the release of better than expected monthly pending home sales. The economic indicator posted an increase of 1% after economists predicted a climb of only 0.4%.
Today traders will be following the release of the ADP Non-Farm Employment Change along with the ISM Non-Manufacturing PMI. The ADP report has been known to show a correlation with Friday’s all important Non-Farm Payrolls Report and can significantly move the market. The ISM survey gives a feel for how businesses view the American economy. Better than expected releases for these indicators could send the EUR/USD back to its next support level of 1.3830.
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