EURUSD was driven by news today from Europe which is still dominating market movements and investors are wary about taking on new positions and risk ahead of the weekend, leading to euro’s decline. The G20 Summit ended in disappointment as the G20 leaders failed to agree on funding to support European governments’ efforts to contain the debt crisis. Meanwhile investors are focused on the results of the Greek government confidence vote due by 22:00 GMT. EURUSD fell from a NorAm session high of 1.3866 to touch a low of 1.3710.
GBPUSD was trading mixed, initially dipping 0.6 percent to 1.5944 after the non-farm payrolls disappointed by missing expectations of a 95,000 increase in jobs whereas only 80,000 jobs were created. But Cable soon rebounded back to previous levels of 1.6015.
The Canadian dollar weakened sharply after Canadian employment data showed a huge decline in jobs much lower than expectations. There was a drop of 54,000 jobs in October despite a forecast for 12,200 to be created, which was still lower than September’s 60,900 jobs, and the unemployment rate jumped to 7.3 percent from 7.1 percent. The Canadian dollar dropped for the first time in three days, losing 0.95 percent within minutes of the data as USDCAD gapped up from 1.0100 to 1.0167 within seconds and continuing to advance to 1.0196.
The yen weakened against most major counterparts including the euro, dollar, pound and Australian dollar as risk appetite lessened desire for the safe haven Japanese currency. Euro gained 1.4 percent in US session. EURJPY opened in New York at 106.56 and advanced to a high of 108.05 after news of the Greek referendum cancellation. This means Greece will receive its next aid tranche from the IMF/EU before it runs out of money in December. The dollar slightly advanced against yen as risk appetite improved, with USDJPY moving up to 78.09 from the 78.00 open price.
The Swiss franc snapped a week of gains against the euro today in the European session in reaction to Swiss National Bank Governing Board member Jean-Pierre Danthine’s comments yesterday the franc remains strong even at a rate of 1.20 per euro. The central bank on September 6 imposed a cap of 1.20 francs per euro in an effort to curb franc strength after it surged to record levels, threatening Swiss exports. EURCHF jumped almost 1 percent to 1.2245 from 1.2139 in Europe trading and held on to gains in the New York session where it traded sideways. USDCHF was mixed, rising after NFP to 0.8904 then erasing all gains to fall to 0.8832.