Thursday, 5 Nov 2009

Trading is in Narrow Ranges Ahead of the Non Farm Release

The Dollar traded near a one week low versus the EUR ahead of Friday's U.S. payrolls report on expectation the Federal Reserve will lag other major central banks in ending their economic stimulus program.

Midday Thursday, the EUR was at $1.4859 from $1.4872 late Wednesday. The USD was at Y90.45 from Y90.67, while the EUR was at Y134.40 from Y134.92. The U.K. Pound was at $1.6562 from $1.6581.

The Pound rose against the Dollar for a 3rd day as the Bank of England (BOE) increased asset purchases less than expected by economists. The EUR was supported by European Central Bank (ECB) President Jean-Claude Trichet statement that he will withdraw some emergency liquidity measures. Both central banks maintained their interest rates unchanged, inline with investors expectations. Earlier in the day the release of better than expected U.S. jobless claims and 3rd quarter productivity data boosted risk appetite, sending the EUR to an intraday high of $1.4918.