Fri 3rd Dec: Profit booking ahead of payrolls leads to a dollar recovery
The Dollar regained some of its shine yesterday as it regained lost ground ahead of Friday's all important non-farm payrolls numbers.
These could lead to yet another round of dollar buying if the numbers come out higher than expected at 180k.
Yesterday a slight rise in the weekly jobless numbers failed to damage much the profit taking sentiment in the majors as traders trun cautious ahead of the payrolls.
Further helping the dollar were the factory orders which rose 0.5 percent-higher than expected.
Comments from the ECB chief Trichtet also helped weighed on the single currency as he acknowledged the downward revision in the euro zones growth forecasts for the currenct as well as next year.
In the same vein he also sounded less hawkish on his comments regarding the prospective rise in inflation when he stated that the inflation was expected to be capped at 2 percent in the next year.
Euro's neighbour Sterling also shrugged comments from the BOE officials as it joined the other majors in a fall to mid $1.92 levels.
Jawboning continues across the Pacific as Bank of Japan officials reiterate that such currency movements are a source of worry and a combined effort both from the ECB and BoJ was likely in the markets.
Yen was also pulled down on possible expectations of an intervention bid by the central bank ahead of the payrolls numbers.
These could lead to yet another round of dollar buying if the numbers come out higher than expected at 180k.
Yesterday a slight rise in the weekly jobless numbers failed to damage much the profit taking sentiment in the majors as traders trun cautious ahead of the payrolls.
Further helping the dollar were the factory orders which rose 0.5 percent-higher than expected.
Comments from the ECB chief Trichtet also helped weighed on the single currency as he acknowledged the downward revision in the euro zones growth forecasts for the currenct as well as next year.
In the same vein he also sounded less hawkish on his comments regarding the prospective rise in inflation when he stated that the inflation was expected to be capped at 2 percent in the next year.
Euro's neighbour Sterling also shrugged comments from the BOE officials as it joined the other majors in a fall to mid $1.92 levels.
Jawboning continues across the Pacific as Bank of Japan officials reiterate that such currency movements are a source of worry and a combined effort both from the ECB and BoJ was likely in the markets.
Yen was also pulled down on possible expectations of an intervention bid by the central bank ahead of the payrolls numbers.
posted by Wise Money @ 10:55 AM
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