The European trading session today was mostly uneventful with very thin trading volumes due to most markets being closed for the Easter holidays.
Most major currency pairs hovered around levels reached on Friday after the disappointing US jobs report that showed non-farm payrolls only rose by 120,000, which was much lower than 203,000 forecast. Risk aversion still dominates the markets today.
EURUSD opened the European session at 1.3063 and only slightly edged up to a high of 1.3084, moving off a one-month low of 1.3032 reached in the earlier Asian session. The single currency is under pressure as the eurozone sovereign debt crisis is back in focus after Spanish bond yields are recently on the rise. A disappointing Spanish debt auction last week highlighted concerns that Spain will have a very hard time reducing debt.
EURCHF continues to test the 1.20 franc floor set by the Swiss National Bank, causing nervousness even though the reason for temporary spikes below the floor are due to technicalities. The SNB increased its rhetoric about defending the floor and that it is committed to buying unlimited amounts of foreign reserves for that purpose.
Yen held onto gains, remaining firm due to safe haven flows. USDJPY hovered near one-month lows, hitting 81.22 in the session. EURJPY traded a tight range in European hours after the sharp drop in Asia, down 0.5 percent to 106.14.
Aussie was lower against the greenback compared to Friday despite data from China, Australia’s major trading partner, showing Chinese consumer inflation accelerated in March. AUDUSD opened the European session at 1.0285 and was mostly flat until edging higher to 1.0297going into the U.S. session open.
Looking ahead, no data on the economic calendar except for a speech by U.S. Fed Chairman Bernanke tonight. He is scheduled to speak at 6pm EST today, on ‘fostering financial stability”.