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3 May 2013
Forex: EUR/JPY rises to 130.00 handle on US session
FXstreet.com (Barcelona) - While the USD/JPY made a quick rally to 90.00 area, staying sideways since then, and the EUR/USD plunged to 1.3034 before pulling back to its highs at 1.3150, the EUR/JPY reaction to the US nonfarm payrolls during the US session has been more of a steady rise towards the 130.00 mark. The pair jumped 100 pips to 129.50 first, and then extended higher to 130.34 high slowly. The market is currently +1.50% up on the day, just below the 130.00 handle.
The US nonfarm payrolls surprised investors as the March weakness was revised higher by 50K, from 88K to 138K. Also, April data came in above market consensus, at 165K instead of 145K.
Market consensus was already suggesting a contraction, but by -2.6% in March, not what actual Factory Orders data showed: -4.0%. Also, the February figure was revised lower, from -3.0% to -1.9%. The non-manufacturing PMI by ISM fell from 54.5 to 53.1 in April, disappointing investors that were expecting a figure around 54.0.
The European Commission granted a 2-year extension to achieve the deficit deadlines in Spain and France, placing it in 2016 and 2015 respectively.
“Above 130 will target the 131.12 recent high. Our slightly longer term target is 136.71, the upside measurement from a wedge”, wrote Commerzbank analyst Karen Jones.
The US nonfarm payrolls surprised investors as the March weakness was revised higher by 50K, from 88K to 138K. Also, April data came in above market consensus, at 165K instead of 145K.
Market consensus was already suggesting a contraction, but by -2.6% in March, not what actual Factory Orders data showed: -4.0%. Also, the February figure was revised lower, from -3.0% to -1.9%. The non-manufacturing PMI by ISM fell from 54.5 to 53.1 in April, disappointing investors that were expecting a figure around 54.0.
The European Commission granted a 2-year extension to achieve the deficit deadlines in Spain and France, placing it in 2016 and 2015 respectively.
“Above 130 will target the 131.12 recent high. Our slightly longer term target is 136.71, the upside measurement from a wedge”, wrote Commerzbank analyst Karen Jones.