Friday, 4 Mar 2011

EUR/USD Steady Ahead of Non-Farm Payrolls

The EUR/USD remained close to the 1.3970 level throughout the day, as investors eagerly await this month's US Non-Farm Payrolls figure. The pair jumped yesterday after the ECB President stated that euro-zone interest rates may be increased as early as next month. It appears that unless the US provides credible evidence that the economic recovery is making progress, the dollar will likely remain bearish against its main currency rivals.

Analysts are predicting that the US added approximately 191K jobs in February. If true, the figure would represent a steep increase in job growth over the previous month. As a result, the EUR/USD could fall to close out the week. That being said, the Non-Farms figure has proven hard to predict. A low figure could bring the EUR/USD above the 1.3400 level.