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
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.