Thursday, 3 Jun 2010

Euro Rebounds Modestly on Improved Market Sentiment

The EUR experienced a modest rally in early European trading today as positive economic data from the U.S and Euro-Zone lifted market sentiment. However, as the trading day progressed the common currency receded most of its gains against the USD as the single currency is still vulnerable to continued sovereign debt concerns. The Yen remains under selling pressure as investors await the results of Friday's prime ministerial election.

The EUR is up at $1.2255 from $1.2236 and at ¥113.60 from ¥112.73. The Dollar is at ¥92.66 from ¥92.16 late Wednesday in New York. The Pound is at $1.4686 from $1.4649 after earlier rising as far as $1.4743. The Pound retreated after a disappointing release from the service sector PMI, coming lower than economists expected.

Optimism over the global economy rose ahead of today's release of the ADP non farm employment data and the U.S. employment numbers Friday. The expectation is for improvement in both indicators to show improvement, pointing to a recovery in the U.S jobs market.