Forex News Review – USDJPY falls after weak ISM non-manufacturing PMI data

Important: This page is part of archived content and may be outdated.

The euro had a very choppy day but after a sharp drop during ECB President Mario Draghi’s press conference following the central bank’s policy meeting, the single currency trimmed losses and rallied against the dollar. Draghi was less dovish than expected, and there was no hint of additional liquidity intervention, which helped buoy the euro. The ECB kept its benchmark  interest rate  a record low 1 percent, as expected but did not signal any potential  cuts. EURUSD bounced from a low of 1.3094 to 1.3179 before steadying at 1.3141.

 

Many investors are positioning for Friday’s key US jobs data. The non-farm payrolls report is forecast to show an improvement in the jobs sector, with 160,000 jobs created in April versus 120,000 in March. This will help the dollar, which weakened today after some disappointing ISM data of non-manufacturing industries.

 

Yen gained against the dollar after the weaker than expected ISM non-manufacturing PMI. USDJPY fell to a session low of 80.16 from 80.54. The safe haven Japanese currency also gained against the euro. EURJPY fell to 105.41 from 106.10.

 

Kiwi was the biggest loser today, losing almost 2 percent against the US dollar. NZDUSD slid to 0.7987, the lowest since January 17. New Zealand unemployment rose to 6.7 percent in the first quarter from 6.4 in the previous quarter, increasing speculation of a rate cut by the RBNZ.