Euro Falls On Disappointing

A disappointing US jobs report resulted in the safe-haven US dollar sliding against the Japanese yen while rallying against riskier currencies like the AUD and EUR to close out last week's trading session. Turning to today, elections held in France and Greece over the weekend are forecasted to generate significant market volatility. Any indication that Greece could back away from recent austerity measures as a result of the election could result in the euro extending its current bearish trend. Economic News USD - US Jobs Report Causes USD/JPY to Tumble Last Friday's US Non-Farm Payrolls figure came in at 115K, well below the forecasted 173K. The news represented the third month in a row of declining hiring in the US, and resulted in renewed speculation that the Fed may initiate a new ...

A batch of negative euro-zone economic indicators, including a worse than expected manufacturing PMI, drove the EUR/USD to its lowest level in over a week during trading yesterday. The news also resulted in the euro dropping over 140 pips against the yen during the European session. Turning to today, European news is forecasted to generate significant market volatility. Traders will want to pay attention to the results of a Spanish debt auction, as well as to the ECB Press Conference at 12:30 GMT. Should any of the news signal further troubles regarding the euro-zone economic recovery, the common currency could drop further before markets close for the week. Economic News USD - ADP Employment Figure Leads to Dollar Losses The US dollar fell vs. the safe-haven JPY throughout European ...

(Reuters) - The dollar bounced back on Wednesday from 2-1/2-month lows against the Japanese yen after upbeat U.S. manufacturing data soothed fears the economy was slowing, though gains were minimal ahead of the next set of figures including payrolls. The Institute of Supply Management report showed the strongest rate of U.S. factory growth in 10 months, a surprise after a string of disappointing data and countering speculation the Federal Reserve will embark on a third round of bond buying to bolster the economy. "After the surprisingly strong ISM number, the next job data will be more important than usual. If it is strong, it could cement expectation of strong recovery at least in the United States," said Mitsuru Saito, chief economist at Tokai Tokyo Securities. The payroll data is due ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States - Europe provided plenty of negative headlines this week. Both Spain and the U.K. confirmed their economies fell back in recession, while the former saw its unemployment rate jump to 24.4%. - The Dutch government collapsed over a dispute regarding fiscal tightening measures and S&P downgraded Spain's sovereign rating by two notches to BBB+. - Although unspectacular, things were better in the U.S. First quarter GDP growth came softer than expected. However moderate, a 2.2% q/q annualized economic expansion feels comforting against the European backdrop. Canada - Retail trade slid by 0.2% in February as auto sales declined following strong January results. - Newfoundland and Labrador brought down its budget, ...

(Reuters) - Oil pared lossed on Friday to trade at around $119.90 a barrel after disappointing U.S. data revived hopes of further liquidity injections from the Federal Reserve to boost the flagging economic recovery. Brent crude, widely used as a global oil benchmark, was down just 5 cents to $119.87 a barrel by 1341 GMT. U.S. crude oil was off 7 cents to $104.48 a barrel. Oil was sold off earlier in the session after S&P downgraded Spain's credit rating but pared losses when U.S. first quarter GDP figures missed the consensus forecast. The data hit the dollar, and a weaker U.S. currency is supportive of commodities priced in dollars as it makes them cheaper for holders of other currencies. Some traders also took the view that the below-expectations GDP figure would open the door to a ...

(Reuters) - The dollar fell to a three-week low against a basket of major currencies on Thursday after the Federal Reserve said it was ready to launch another round of bond buying if the U.S. economy weakens. The dollar's weakness boosted the Canadian dollar and pushed the British pound to a seven month high against the U.S. currency, as the central banks of Canada and Britian, in contrast to the Fed, are seen moving away from further stimulus. A tightening of peripheral euro zone spreads lifted the euro, but with debt problems still brewing large and the threat of a recession and political instability hanging over the euro zone, the common currency was unlikely to break above its recent highs, analysts said. The dollar index .DXY was at 78.849, having fallen as low as 78.823 its lowest ...

(Reuters) - The U.S. dollar floundered at three-week lows against a basket of major currencies on Thursday, after the Federal Reserve did little to alter the perception that the central bank will be deeply committed to a dovish policy stance. While the Fed's policy meeting turned out to be a bit of an anti-climax to many market players, the fall in euro zone sovereign yield spreads overnight also helped to push the euro up above its peak last week to test major resistance levels. The dollar index .DXY stood at 79.063, having fallen as low as 78.995 after Fed Chairman Ben Bernanke said the central bank would not hesitate to launch another round of bond buying if the economy needed it. The Fed has previously engaged in two rounds of asset purchases totaling $2.3 trillion, known as ...

(Reuters) - The dollar fell to a three-week low against a basket of currencies and the euro held near recent highs as strong company earnings boosted investors' appetite for risky assets and the U.S. central bank was expected to keep interest rates ultra-low. Investors were relieved when successful debt auctions sent yields on Dutch, Spanish and Italian debt lower on Tuesday, but traders said the euro remained vulnerable given budget problems and political uncertainty in several euro zone countries. The dollar, which is seen as a safe haven, fell to a three-week low against a currency basket .DXY, with the index dropping to 79.065, as the Federal Reserve was expected to restate its intention to keep interest rates near zero throughout 2014. The focus will be on whether policymakers hint ...

Sunrise Market Commentary Fixed Income: core bonds remain near contract highs Global core bonds reversed Tuesday's losses in a rather uneventful session. Today, all attention will go to the Spanish bond auction. A weak auction two weeks ago put pressure on Spanish yields since. The 10-yr yield flirts with the psychological 6% mark. In order to avoid more tensions, failure today is not an option. Currencies Sterling leaps higher on less dovish BoE Minutes While EUR/USD trading was rather uneventful, sterling was the star performer. Helped by less dovish BoE Minutes and a stronger labour market report, sterling shot higher pushing EUR/GBP below key support and GBP/USD above 1.60. The Sunrise Headlines US Equities dropped slightly lower on Wednesday, giving back part of ...