The Euro today as part of the European Session extended its losses against the Dollar. Around the middle of the session the made a small temporary 30 pip rise following comments by the ECB policymaker Ewald Nowotny that the market over-interpreted Trichet’s and the ECB policy about an interest rate hike happening in July instead of June. During the overlap of the Europrean with the American Session Non-Farm payrolls were announced for the USA that were much more hawkish than what the market anticipated. The news caused the Euro to drop a further 75 pips reaching to a 1.4457 session low from which it is currently recovering. The EURUSD pair is currently traded at 1.4497.
The Sterling today extended its gains over the Euro. The Euro which has made a massive drop following the ECB policy meeting continued to make losses over the Sterling. As part of the day Producer Price Index were announced in UK for the month of April that were hawkish. After 3 consecutive days of weak data UK got its break with this inflation data putting more pressure in the Bank of England to revise its monetary policy. This announcement gave the Sterling 40 pips.
The Sterling made gains today over the American Dollar that were mostly boosted by the strong PPI inflation data. During the last hour of the session that the Non-Farm Payrolls were announced in USA to be hawkish the Sterling drop to a 1.6372. Nevertheless the Sterling was able to bounce back possibly because the employment USA data showed a small increase in the Unemployment data.
The Dollar today was significantly strong against the Swiss Franc. It started the session at 0.8680 and was steadily move up. The start of the session showed hawkish news for the Swiss Franc showing improvement in employment. However the effect on the Franc was temporary. The end of the session found the Dollar closing at 0.8748 having recorded a 0.8798 slightly before the closure being boosted by the hawkish Non-Farm Payroll data.
The Japanese Yen during the European Session was making gains against the Dollar with the pair reaching as low as 80.20. The session however ended at 80.73 having recorded a massive jump slightly before to reach 80.73 boosted by the US Non-Farm payrolls . The Yen is appearing to be making gains now recovering from that high.