Forex Asia Review – Euro hits new month high against Dollar

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Forex News – EURUSD finds support above 7 week lowThe Euro touched a new one-month high against the dollar over night in Asian trading, spiking slightly past the Thursday high to 1.4517. The Single Currency was given a boost by a weaker Dollar which is weighed down as investors are concerned whether U.S. jobs data due later in the day might signal a protracted soft patch in the U.S. economy’s recovery and a further slide in the dollar. Meanwhile, the Euro is still supported by the wave of optimism as a deal is being reached for a second Greek bailout package. EURUSD was mostly trading sideways all session except for the spike to the month-high, remaining above 1.4478.

 

 

Sterling remained below its high reached against the Dollar yesterday after positive construction PMI data. GBP hasn’t made a clear trend yet. There is not much action in the market as investors are reducing risk ahead of the important US Non-farm payrolls report to be released later today. Expectations are for a drop in the numbers,, however, some market players say the chances of a steep dollar sell-off after the U.S. jobs data on Friday do not seem very high since the market already factored it in after the disappointing private US ADP jobs report last Wednesday. GBP USD highs were at 1.6379, lows at 1.6335.

 

 

The Japanese Yen moved higher against the Dollar in Asian trading, helped by a weaker greenback. The Yen is considered to be a safer currency versus the Dollar. Until U.S. non-farm payrolls figures due later on Friday, in the wake of a poor run of data for the world’s largest economy, there will not be much Dollar buying. This put pressure on USDJPY, pushing it down overnight from 80.87 down to 80.66.

 

 

The Australian Dollar held on to gains versus the greenback overnight, rising to highs of 1.0715 and remained above the 55 Moving Average. Lowest point was 1.0660. Overall the Aussie was trading much lower today compared to the highs reached on Monday this week at 1.0756 but it has been holding steady. As the Australian currency is considered a risk currency, and a commodity-linked currency, market players are playing it safe and are on a wait-and-see mode ahead of the key US jobs data coming out later today.

 

 

Spot gold held steady overnight with no major movements on a slight downtrend. The precious metal is being supported by a risky Dollar after negative news that Moody’s ratings agency threatened to cut the U.S. credit rating. Again, investors are on the sidelines waiting for the US non-farm payrolls data. If the NFP data turns out worse than expected, it may boost gold to advance towards new record highs in the next few days. Spot gold touched highs of $1,534.78 and lows of $1,529.92.

 

 

EURUSD USDJPY GBPUSD AUDUSD GOLD
OPEN

(22:00 GMT)

1.4489 80.87 1.6368 1.0669 1533.18
DAY’S HIGH 1.4517 81.00 1.6379 1.0715 1534.78
DAY’S LOW 1.4479 80.66 1.6335 1.0666 1529.92
CLOSE

(06:00 GMT)

1.4484 80.67 1.6342 1.0672 1530.38