Greenspan fails to support the dollar
The single currency retreated off its lows of 1.3093 as Fed chairman gave a brief commentary on the growing US economy, but more loud was his concern regarding the US fiscal deficit which disappointed the dollar bulls.
Surging oil prices (around $53) as a result of refinery problems in Texas also pressured the greenback slightly and it gave up some of the gains notched in the European session after the release of disappointing Euro zone Q4 GDP at a mere 0.2% and a flat UK manufacturing PMI figures for February at 51.8.
Dollar was not much impacted by a report showing US companies’ plans to layoff 17% more workforce in February (compared to January) due to rising M&A activities.
But it did cause some doubts in traders’ mind as it contrasts sharply with the weekly jobless claims showing a steady improvement in February thus giving hopes of a formidable payrolls report. Any nasty surprises on the downside for the payroll on Friday (below 200K) will get the knives out for dollar.
Today’s data includes the ISM services figures expected to be strong that may give some hopes for tomorrow’s payrolls, needed for giving an upward fillip to the dollar.
Technically, Euro meanders between 1.3080 – 1.3150 waiting for a trigger to cart it upwards with 1.3360 capping any major breakout. Sterling has major support at 1.9050 (a 50% Fib of the Jan-Feb rally in the dollar) with resistance at 1.9260.
Surging oil prices (around $53) as a result of refinery problems in Texas also pressured the greenback slightly and it gave up some of the gains notched in the European session after the release of disappointing Euro zone Q4 GDP at a mere 0.2% and a flat UK manufacturing PMI figures for February at 51.8.
Dollar was not much impacted by a report showing US companies’ plans to layoff 17% more workforce in February (compared to January) due to rising M&A activities.
But it did cause some doubts in traders’ mind as it contrasts sharply with the weekly jobless claims showing a steady improvement in February thus giving hopes of a formidable payrolls report. Any nasty surprises on the downside for the payroll on Friday (below 200K) will get the knives out for dollar.
Today’s data includes the ISM services figures expected to be strong that may give some hopes for tomorrow’s payrolls, needed for giving an upward fillip to the dollar.
Technically, Euro meanders between 1.3080 – 1.3150 waiting for a trigger to cart it upwards with 1.3360 capping any major breakout. Sterling has major support at 1.9050 (a 50% Fib of the Jan-Feb rally in the dollar) with resistance at 1.9260.
posted by Drs Search @ 9:37 AM
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