NFP anticipation keeps FX in check, euro under ECB heat . . . . . . . . . . . . The euro is trending lower again against the dollar following the impact of the ECB rate cuts on the FX markets, while traders await US May jobs report for clues about the US economic recovery. The pressure is still evident on the euro after the ECB`s fresh stimulus action, with cuts to all three main rates and 400 billion euros worth of targeted LTROs to be conducted in September and December this year -- all in a bid to help banks lend to small companies, tackle ultra-low inflation and bolster the euro-area economy. As of 12:47 GMT, the EURUSD was trading around 1.3625 compared with the day`s open at 1.3659. The pair has session a session high at 1.3664. Meanwhile, the downside move is pushing the pair towards support level at 1.3620 targeting 1.3530 and 1.3505 if the previous level was broken. The pound steadied against the dollar after Bank of England remained firm on its monetary policy. But the pair faced some downside pressure this morning, after government data showed the country`s trade deficit has widened more than anticipated in April. As of 12:49 GMT, the GBPUSD was little changed around 1.6818 follwoing the yesterday`s rally that took the pair to its highest level in a week. Meanwhile, the pair is facing strong resistance level at 1.3815 and a break above that level will likely open the door for further gains. The dollar is looking shy ahead of the Non-farm Payrolls Report for May, due to be released today, with expectations that US employers added 215 thousand jobs for a fourth straight month in May from 288 thousand in April. Unemployment probably rose to 6.4% last month from 6.3%. The dollar has rebounded slightly from yesterday`s slump against a six currency basket, where the USDIX ticked higher towards 80.49 from 80.38 as of 12:50 GMT. The benchmark is still trading below the resistance level at 80.55 where stability below that level might push the benchmark lower, while a break above these unless we confrim the upside correctional move. #egyptyard
Posted on: Fri, 06 Jun 2014 12:37:16 +0000
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