5 Feb 2014
Session recap: Choppy day ahead of ECB and Nonfarm payrolls
FXStreet (San Francisco) - The currency market performed a choppy day as investors traded the opposite from the previous day. EUR/USD rose but pegged to 1.3500 while the GBP/USD and USD/JPY declined.
Adam Button affirmed in a recent piece that there are "no big drivers in the data" ahead of the ECB meeting on Thursday and Nonfarm payrolls on Friday. However, market tested a small piece of cake with the weaker than expected ADP but stronger ISM non manufacturing numbers.
The EUR/USD remains near to the 1.3500 area as the pair finished the session at 1.3530, overall positive. "The EUR/USD is also dependant of whether the ECB will finally loosen its economic policy as promised, with falling inflation," FXStreet's analyst Valeria Bednarik comments. "Trading right above the 1.3500 level, short term charts maintain a quite neutral technical stance, with the key support standing at 1.3476, this year low, and sellers ready to defend 1.3600 in case of recoveries."
The GBP/USD fell hard to 1.6250 in the early American morning but the pair managed to recover all losses and it closed at 1.6310. The USD/JPY also declined on the day with the pair holding above the 101.00 area.
Tim Riddell, Head of Global Markets Research Asia at ANZ, comments that the "sustained slippage below 101 may indicate broader consolidation patterns (not a reversal) forming before USD/JPY can develop a more constructive rally. monthly close back above 103.50, ideally above 106.65, is needed to call an early return to the uptrend and raise the potential of a broader push to at least 111.50-00 if not the 120.00 area."
Main headlines in the American session:
US: Private sector adds 175,000 jobs in January - ADP
Canadian building permits fall 4.1% in December
US: Markit services PMI rises to 56.7 in January
Moody's assures US AAA rating secure despite debt limit deadline
US: ISM Non-Manufacturing PMI climbs a notch in January
Moody's raises Mexico to A3 from Baa1; outlook stable
US stocks close near to highs... but negative
Adam Button affirmed in a recent piece that there are "no big drivers in the data" ahead of the ECB meeting on Thursday and Nonfarm payrolls on Friday. However, market tested a small piece of cake with the weaker than expected ADP but stronger ISM non manufacturing numbers.
The EUR/USD remains near to the 1.3500 area as the pair finished the session at 1.3530, overall positive. "The EUR/USD is also dependant of whether the ECB will finally loosen its economic policy as promised, with falling inflation," FXStreet's analyst Valeria Bednarik comments. "Trading right above the 1.3500 level, short term charts maintain a quite neutral technical stance, with the key support standing at 1.3476, this year low, and sellers ready to defend 1.3600 in case of recoveries."
The GBP/USD fell hard to 1.6250 in the early American morning but the pair managed to recover all losses and it closed at 1.6310. The USD/JPY also declined on the day with the pair holding above the 101.00 area.
Tim Riddell, Head of Global Markets Research Asia at ANZ, comments that the "sustained slippage below 101 may indicate broader consolidation patterns (not a reversal) forming before USD/JPY can develop a more constructive rally. monthly close back above 103.50, ideally above 106.65, is needed to call an early return to the uptrend and raise the potential of a broader push to at least 111.50-00 if not the 120.00 area."
Main headlines in the American session:
US: Private sector adds 175,000 jobs in January - ADP
Canadian building permits fall 4.1% in December
US: Markit services PMI rises to 56.7 in January
Moody's assures US AAA rating secure despite debt limit deadline
US: ISM Non-Manufacturing PMI climbs a notch in January
Moody's raises Mexico to A3 from Baa1; outlook stable
US stocks close near to highs... but negative