Euro trend continues as we await US jobs data
City Index February 1, 2013 2:10 PM
<p>News overnight came from China with the official manufacturing PMI falling slightly below consensus at 50.4 following expectations of 51 with the final HSBC version […]</p>
News overnight came from China with the official manufacturing PMI falling slightly below consensus at 50.4 following expectations of 51 with the final HSBC version being revised up slightly to 52.3 from 52 with only the AUD reacting to these numbers as the lifestyle dips below 1.0400.
The US 10-year yield added two basis points over night and is currently trading just over 2% which was the catalyst for further JPY depreciation with USD/JPY now trading on a 92 handle and with further Euro strength the 125 level was accomplished in EUR/JPY overnight after the technical break of 123.30 was seen earlier in the week.
It’s all about the US unemployment data at 1.30pm this afternoon with most analysts looking for a strong number as we trend around the 150k mark. A payrolls number between 140k and 190k will probably be seen as a continuation of prior trends and roughly market neutral. Given the Fed’s 6.5% unemployment threshold for monetary policy, markets will pay as much attention to that variable as payrolls counts.
Early PMI data from Europe are showing stronger readings which will please the ECB president as he uses these a strong gauge with LTRO repayments and the UK PMI also of keen interest this morning.
Supports 1.3575-1.3530-1.3485 | Resistance 1.3660-1.3730-1.3790
Supports 91.60-91.30-90.70 | Resistance 92.30-92.85-93.65
Supports 1.5840-1.5815-1.5770 | Resistance 1.5880-1.5900-1.5930
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