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2 Apr 2015
All eyes on nonfarm payrolls
FXStreet (Córdoba) - Majors went through a consolidation phase during the American session, with the euro outperforming other peers for no particular reason.
With most pairs ending the day just at their starting points, EUR/USD managed to briefly rise above 1.0900 to hit a 1-week high. The advance of the shared currency was not tempered by reports suggesting that Greece could run out of cash by April 9, which however was quickly denied by Greek authorities.
The dollar fleetingly strengthened on the back of US jobless claims and trade balance figures at the beginning of the session, but it gave up most gains afterward. USD/JPY settled below 120.00 and GBP/USD traded around 1.4820.
US stocks finished the day and the Easter-shortened week posting modest advances. The DJIA rose 0.37%, S&P 500 gained 0.35% and the Nasdaq climbed 0.14%.
All eyes now turns to the nonfarm payrolls report, while most global markets will remain closed on Friday due to the observance of Good Friday. Analysts consensus calls for a 244,000 job gain in March, following 295,000 jobs created in February.
Valeria Bednarik, chief analyst at FXStreet commented that “the market will need to add around 250K or above, to prevent the dollar from falling further, whilst a reading above 300K will most likely trigger another round of dollar strength, pushing the American currency towards new year highs against its most weak rivals, the EUR and the JPY”.
“Anything below 240,000 will be bad news for the greenback, implying September will be more likely than June when it comes to a rate hike”, Bednarik added.
With most pairs ending the day just at their starting points, EUR/USD managed to briefly rise above 1.0900 to hit a 1-week high. The advance of the shared currency was not tempered by reports suggesting that Greece could run out of cash by April 9, which however was quickly denied by Greek authorities.
The dollar fleetingly strengthened on the back of US jobless claims and trade balance figures at the beginning of the session, but it gave up most gains afterward. USD/JPY settled below 120.00 and GBP/USD traded around 1.4820.
US stocks finished the day and the Easter-shortened week posting modest advances. The DJIA rose 0.37%, S&P 500 gained 0.35% and the Nasdaq climbed 0.14%.
All eyes now turns to the nonfarm payrolls report, while most global markets will remain closed on Friday due to the observance of Good Friday. Analysts consensus calls for a 244,000 job gain in March, following 295,000 jobs created in February.
Valeria Bednarik, chief analyst at FXStreet commented that “the market will need to add around 250K or above, to prevent the dollar from falling further, whilst a reading above 300K will most likely trigger another round of dollar strength, pushing the American currency towards new year highs against its most weak rivals, the EUR and the JPY”.
“Anything below 240,000 will be bad news for the greenback, implying September will be more likely than June when it comes to a rate hike”, Bednarik added.