USD remains stable
On Friday the US dollar remained stable to higher against the other most important currencies, following the publication of the mixed U.S. trade and industry data, as anxiety over the management of the sovereign liability crisis in the Euro zone weighed on demand for riskier assets. All through the morning trade in the US, the dollar remained higher versus the euro with the EUR/USD falling 0.29% to 1.2932. Emotion on the euro remained delicate following the Bundesbank slashing its 2013 expansion projection to 0.4% from the 1.6% that was forecasted in June and officials stated the German GDP will grow 0.7% this year, lowered from its previous prediction of 1%.
The statement came after European Central Bank President informed on Thursday that risks to the attitude remain on the downside.
Further, the official statistics informed that Germany’s industrial production fell 2.6% in October, which is more than the anticipated 0.2% fall, which followed a 1.3% decline the preceding month.
The greenback was also elevated against the Pound, with the GBP/USD falling 0.21% to 1.6018.
Government statistics showed that UK’s manufacturing production in October dropped 1.3%, which is far more than the anticipated 0.2% fall, after a 0.1% increase the earlier month.
In other places, the greenback remained more or less unaffected against the yen, with USD/JPY plummeting 0.05% to trade at 82.37, and went higher in opposition to the Swiss franc, with USD/CHF adding 0.23% to 0.9345.
So far as the Australian, Canadian and New Zealand Dollars are concerned, the greenback was steady to lower, with AUD/USD inching up 0.02% to 1.0489, USD/CAD declining 0.28% to 0.9887, and NZD/USD edging 0.02% higher to 0.8329.
EUR/USD Technical Analysis Update
The EUR/USD currency pair edged to the 1.3100 earlier opposition areas previously last week prior to the new wave of selling occurred with the assumption of a probable ECB rate cut ahead that weighed a great deal on the common currency. This decline has cut all the way through the 1.3000 psychological round number stages, adding together bearish weight to the move, ahead of eventually finding a part of support in the region of the 1.2875 area PPZ (price pivot zone).
This occurred soon after the recent Commitments of Traders (COT) statement informed a EUR net short location at 33K against the 67K reading that was seen the week before, as speculators covered short EUR FX wagers – which does not reveal the aforesaid bearish price action over the back end of the week.
Positive outcome of the earthquake in Japan – Yen moves up against the USD and EUR
Soon after a powerful earthquake shook Tokyo, the yen rose against the USD and the EUR, bringing some relief to the Japanese currency. The USD went down to a low of 82.175 from 82.35. There was some recovery and it traded at 82.30 yen, though it was still down by 0.1 percent on the day.
On the other hand the EUR too fell down to a session low of 106.21 yen soon after the news of the earthquake and the following Tsunami warning that was issued subsequently. It last traded at 106.45 yen, down 0.4 percent on the day.
The losses of the euro against the yen in addition drew the currency to a nine day low against the dollar of $1.29185.
US jobs reports brings down Crude Oil prices to some extent
The latest US jobs report brought down the crude oil prices last week, which offered some cheer as well as presenting the economy’s mixed picture.
Benchmark oil dropped 33 cents to come to an end at $85.93 per barrel in New York on Friday, which became the fourth successive day of declines in prices. The price of crude oil slid by 3.4 percent last week.
The US Labor Department released data showing that 146,000 new jobs were created in November, more than what economists had projected. Unemployment rate of the country fell to 7.7 percent from 7.9 percent in October, but it was due to the fact that more and more people have stopped searching for jobs, but were not bestowed with the unemployed status. The increase of jobs for the months of September and October was revised lower. In the meantime, in addition to the bad sign for energy requirement in Europe, Germany’s central bank lowered its anticipation for financially viable growth next year.