Soundbites from the foreign exchange trading market on Thursday morning.
Simon Denham at spread betting firm Capital Spreads says:
"Foreign currency markets have been rather flat so far this morning. Surprisingly, it’s the euro that’s just coming out on top despite weakness yesterday. Still languishing around its four year lows, the big fallout and drive to the 1.1 levels has yet to materialise, so the congestion around the current levels is giving the single currency a degree of support.
"Clearly foreign exchange traders are sitting on the sidelines ahead of NFP, but it’s difficult to see if there’s any shock to the upside might that it might lead to such a substantial more lower for the euro. What’s more likely to contribute to the next leg down, should it come, is the meeting of the G20 finance ministers over the week end.
"USD/JPY continues to edge higher, just below 93.00, which is the next level the bulls will be targeting, before wanting to have a look at 95.50 should there be enough momentum behind the dollar and as mentioned a better than expected number at NFP might give the dollar another boost.
Easy Forex, providers of the retail foreign exchange trading platform say:
"U.S. Dollar Trading (USD) risk was on in Asia before the fizzling in the US session on subdued job numbers. May ADP private employment was at 55k vs 60k forecast and Weekly Jobless Claims were at 453k vs. 450k forecast. In US stocks, DJIA +5 points closing at 10255, S&P +4 points closing at 1102 and NASDAQ +21 points closing at 2303. Looking ahead, May Nonfarm Payrolls is forecast at 513k vs. 290k previously. Also released, May Unemployment Rate is forecast at 9.8% vs. 9.9%.
"The Euro (EUR) enjoyed a relief rally in Asia to above 1.2300 before the European's once again focused the market on the downside risks. Heavy EUR/CHF selling added weight to the major falling back towards the key 1.4000 level. April Retail Sales at -1.2% vs. 0.2% forecast. EUR/USD traded with a low of 1.2152 and a high of 1.2328 before closing at 1.2170. Looking ahead, Q1 GDP forecast at 0.2%.
Caxton FX say:
"The euro remains trading near a four year low, hemmed in by banking sector worries, while the greenback is supported ahead of the monthly US employment report.
"Adding to the woes for the single currency, eurozone retail sales data disappointed yesterday, suggesting a sharp consumer retrenchment due to concerns over fiscal austerity measures."
From THE ECONOMY NEWS published on Friday, 04 June 2010 09:44