Friday, 5 Feb 2010

USD Gains Ahead of Non Farm Payroll Data Release

The EUR dropped to an 8 month low against the USD over persistent concerns fiscal problems in Greece and other European nations will suppress the region's economic recovery. The common currency headed for a 4th weekly loss versus the USD and JPY on surging credit risk for several European nations as well a report which showed industrial production in Germany, the region's largest economy, slowed last month. Production declined 2.6% January, after growing 0.6% the previous month.

The EUR fell as much as 0.6% to $1.3648, the weakest level since May 20, and is currently trading at $1.3700, from $1.3723 yesterday in New York. The Yen was at 122.26 per EUR, from 122.19 yesterday, when it jumped 3.4%, the biggest gain since October 2008. The USD is at 89.46 Yen, from 89.05.

The Non Farm Payroll Data is especially interesting for investors today after first-time Unemployment Claims unexpectedly climbed to their highest level since mid-December last week, defying economists' expectations of a sharp downturn.