Improved Non-Farm Payrolls Driving U.S. Dollar Higher
The Euro is rebounding this morning after a sharp sell-off on Wednesday. Pressure was on the single currency yesterday following the confirmation of a technical closing price reversal top the day before. Fundamentally, traders turned bearish on the currency after Moody’s Investors Service downgraded 30 Spanish banks and following the resignation of Portugal’s prime minister.
Coordinated Intervention Sends USD JPY Sharply Higher
After a break to nearly 76.00 on Thursday, the USD JPY rallied overnight after the Group of Seven nations agreed to take steps to curb the Japanese currency’s rapid rise. The wave of coordinated intervention by the global financial powerhouse also known as the G-7 is an attempt to stabilize the Yen and bring it back to more respectable levels following the post-earthquake rally.
Interest Rates Driving Euro and British Pound Higher
The surprise this week in the Forex markets is the inability of the U.S. Dollar to attract fresh investors given the escalating problems in the Middle East and North Africa. With crude oil and gold rising as traders take protection, many traders thought the Greenback would benefit from flight-to-safety buying.
U.S. GDP Higher, but Misses Estimate; Overbought Conditions May Pressure Euro
The USD JPY strengthened for a second day as traders turned a little more optimistic about a U.S. economic recovery. Traders are looking for a slight improvement in the U.S. jobs market this Friday. This is helping to support the idea that while the U.S. economy may not be boosting a strong uptrend, it is most likely building a stronger support base.