Currency Analyst since 2010

July 5: Asian session

US dollar strengthened versus most of its counterparts this week ahead of a US non-farm payrolls report today (12:30 GMT) that may show companies added enough jobs to lower the unemployment rate preparing the ground for the Fed to curb stimulus.

EUR/USD is trading in the $1.2900 area after falling from levels above $1.3000 yesterday. GBP/USD closed below $1.5100 yesterday and is now trading in the $1.5040 zone. Euro and pound slid as the ECB President Mario Draghi and the Bank of England Governor Carney signaled they will keep interest rates at record lows. Watch German factory orders at 10:00 GMT. Portugal’s benchmark 10-year bonds fell back by 25 basis points to 7.22%. The nation’s Prime Minister Pedro Passos Coelho said yesterday his government will have the support of the foreign affairs minister’s party after the latter resigned from his post.

USD/JPY recovered to 100.45 and is trading a bit below this level as of writing. USD/CHF was a bшg mover yesterday, jumping from 0.9450 to 0.9585. On Friday the pair remains in the positive territory, but a bit below Thursday’s high.

Yesterday’s AUD/USD attempt to rebound from the Wednesday low of $0.9040 was capped at $0.9180. On Friday the pair is trading lower around $0.9130. Australian performance of AIG construction index showed improvement, but remains below 50 (as well as AIG manufacturing and service, released earlier in the week). NZD/USD rebounded to $0.7860 on Thursday and today is consolidating lower around the $0.7800 mark. According to New Zealand finance minister English, the government is on track to return to surplus in 2014/15. USD/CAD is on the upside, around 1.0525. Canada will also release employment data at 12:30 GMT and Ivey PMI at 14:00 GMT.

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