Yen continues to tumble as euro strengthens on positive jobs data
City Index April 2, 2014 2:39 PM
<p>The Japanese yen continues to fall this week, with USD/JPY nearly up to 104.00. This was helped by Japan raising its sales tax for the […]</p>
The Japanese yen continues to fall this week, with USD/JPY nearly up to 104.00. This was helped by Japan raising its sales tax for the first time in 17 years and has continued to fall overnight.
The Aussie fell overnight after yesterday’s RBA announcement kept rates on hold and a historically high AUD, with a weak buildings approvals reading last night keeping it under pressure going in to today.
The euro has had a good start to the day, continuing its uptrend with some good data yesterday in unemployment in the eurozone and with Greece being approved loans. But the main waiting game for the EU is the ECB rate and press conference to see how they are going to tackle low inflation levels. For today there is the final GDP reading, expected at 0.3% – the same as last time.
Cable fell yesterday after manufacturing growth falls in March. The currency pair has had a lift up today after USD weakens. The construction PMI is due out today and is likely to come in better than expected at 63.1.
The US ADP non-farm employment change is the main event today. It will be used as a marker for the non-farm payrolls due on Friday. The expected ADP data is 192k, which is an improvement from the previous 139k. It is worth noting that for the last two months the ADP has not lived up to its expected target. Since a high reading in January of 227k it has not quiet climbed back to this as of yet.
Supports 1.3780 1.3750 1.3710 | Resistance 1.3825 1.3865 1.3885
Supports 103.50 103.25 102.65 | Resistance 104.00 104.20 105.00
Supports 1.6600 1.6545 1.6485 | Resistance 1.6665 1.6685 1.6720