Euro Recovers Against Most Majors; U.S. Jobs Data Eyed
August 03 2012 - 3:49AM
RTTF2
The euro strengthened against most major currencies on Friday,
thereby recovering the losses it incurred on Thursday amid
disappointment over the European Central Bank's steps to cope with
the eurozone debt crisis.
The euro was under heavy selling pressure yesterday as the
European Central Bank President Mario Draghi failed to announce any
measures to curb the region's debt crisis.
Draghi told reporters that the central bank "may undertake
outright open market operations," but traders seemed disappointed
that there was not more conviction behind his remarks. Last week,
Draghi promised to do whatever is necessary to support the
beleaguered eurozone, leading to a rally on Wall Street.
The euro's rise came today as investors are now bracing for the
U.S. jobs data due out later in the day for cues.
Economists expect the Labor Department report to show that U.S.
employment rose by about 100,000 jobs in July following a weaker
than expected increase of 80,000 jobs in June. The unemployment
rate is expected to remain unchanged at 8.2 percent.
Any upside surprise in employment could temper hopes of more
stimulus from the Federal Reserve, which earlier this week signaled
it is prepared to act unless the economy stages an unlikely
comeback in the next six weeks.
A surprisingly strong jobs report could also boost the dollar,
while a weaker-than-expected jobs number will put the dollar under
fresh pressure.
The euro is now worth 1.2205 against the dollar, up 0.6 percent
from yesterday's 1-week low of 1.2136. If the euro-dollar pair
rises further, it will target the 1.225 level.
Against the Japanese yen, the euro is trading at 95.52, compared
to a 1-week low of 94.95 hit yesterday. The next upside target
level for the euro-yen pair is seen at 95.8.
The euro also followed a similar trend against the pound, with
the pair bouncing back from yesterday's 2-day low of 0.7827. At
present, the pair is worth 0.7867 with 0.790 seen as the next
upside target level.
Looking ahead, services PMI reports for July from Eurozone and
U.K. and the Eurozone retail sales for June are due shortly.
Euro vs Yen (FX:EURJPY)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs Yen (FX:EURJPY)
Forex Chart
From Apr 2023 to Apr 2024
