Forex News – EURUSD steady ahead of US non-farm payroll report

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EURUSD still has not taken a clear direction after pausing from Wednesday’s huge jump. Gains were held in European trading after a Spanish bond auction met its target sale. However, going into the North American session Euro gains dissipated slightly as US equity markets fell. Investors are taking a pause ahead of Friday’s US Non-farm payroll numbers and are unwilling to take on new risk ahead of it. EURUSD opened New York at 1.3481and eased down to 1.3442.


Sterling dipped against the dollar in the North American session as dollar gained after better than expected US manufacturing PMI data. GBPUSD opened at 1.5769 and slid to 1.5664.


The Swiss franc weakened sharply versus the dollar and the euro with chatter in the market that the Swiss government may consider negative interest rates to weaken its currency. USDCHF rose 1.3 percent in the US session to hit a high of 0.9190 from a low of 0.9070. EURCHF jumped 1.1 percent to 1.2392 from 1.2255. Earlier in the day, weak Swiss GDP data gave evidence the strong Swiss franc is hurting the Swiss economy. On September 6 the Swiss National Bank set a floor of 1.20 francs to the euro to curb franc strength but says the currency is still too strong.


The Canadian dollar is near a three week high against the US dollar. The loonie is lifted by increased risk appetite especially after Wednesday’s move by central banks is expected to help contain European sovereign-debt turmoil and encourage demand for higher-yielding assets. USDCAD was supported above 1.0136, where the pair headed down to from the US open of 1.0196. The focus turns to Friday’s Canadian jobs report. Canadian employers are forecast to have added 20,000 jobs in November after eliminating 54,000 positions in the previous month. This report, coupled with the US non-farm payroll report will give direction to the USDCAD pair tomorrow.


Against the Japanese yen, euro hit a two week high of 105.05. The dollar held steady against yen, trading a high of 77.79 in the US session.