FOREX-Dollar sinks against yen as Nikkei slides before U.S. jobs data
The dollar sank against the yen on Friday as the safe-haven Japanese currency gathered bids after Tokyo shares fell to a seven-month low in nervous trading ahead of U.S. jobs data due later in the day. The greenback was down 0.7 percent to 119.22 yen. The U.S currency was on track for a 2 percent loss this week, during which it has been pummelled by bouts of global risk aversion that favoured the yen and euro. The dollar index lost 0.2 percent to 96.241.
The yen also surged against the euro, which came under broad pressure after the European Central Bank gave a sobering assessment of the euro zone economy and suggested it may have to beef up its already massive stimulus programme..
Dovish ECB puts euro on the defensive, dollar awaits payrolls
The euro nursed losses on Friday, having come under broad pressure after the European Central Bank gave a sobering assessment of the euro zone economy and suggested it may have to beef up its already massive stimulus program.
The common currency slid as far as $1.1087, from levels above $1.1200. It last stood at $1.1127. Against the yen, it was down 0.4 percent at 133.00 after skidding to a four-month low of 132.985. Traders in Asia may not take things much further ahead of U.S. nonfarm payrolls due later on Friday and with no leads from Chinese financial markets, which are closed for a holiday.
For the August U.S. non-farm payrolls, the market consensus is for an increase of 220,000 jobs.
Pound falls to 2-week lows vs. stronger dollar
The pound fell to two-week lows against the U.S. dollar on Tuesday, as expectations for a U.S. rate hike in the coming months continued to lend broad support to the greenback.
GBP/USD hit 1.5385 during European morning trade, the pair’s lowest since May 8; the pair subsequently consolidated at 1.5415, sliding 0.36%. Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5591, the high of May 20. The dollar was boosted after Federal Reserve Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later in the year if the economy continues to improve as expected.
| Important events and their explanation: |
| Time ( IST) | Currency | Actual | Expectation | Previous |
| 5:40pm | USD | FOMC Member Lacker Speaks | ||
| 6:00pm | USD | Average Hourly Earnings m/m | 0.20% | 0.20% |
| USD | Non-Farm Employment Change | 215K | 215K | |
| USD | Unemployment Rate | 5.20% | 5.30% |
Explanation:- Again a very crucial day for the markets. Non farm and US Unemployment numbers may seriously give the direction for the coming week. We assume above data might come at par and this news have been already discounted. Hence we assume a positive move in the INR in the next two days.
| Quick Glance : |
| Instrument | Price | %Chg | Volume | OI |
| USD/INR | 66.43 | 0.17 | 788526 | 960103 |
| EUR/INR | 73.98 | -0.82 | 37048 | 48836 |
| GBP/INR | 101.72 | 0.07 | 21059 | 41217 |
| JPY/INR | 55.70 | -0.64 | 7908 | 15311 |
| Technical touch : |
As seen pair has pierced its prolonged Symmetrical Triangle and trading above crucial 64.50 levels.
After a surprise move by the Chinese banks rupee depreciated and touched 64.80 levels. We assume rupee to form a minor resistance at 66.70 levels and we assume fall till 66.50 levels.