Previous session overview

The dollar touched a two and a half month low against the yen in Asia on Wednesday due to selling by Japanese exporters, falling long-term U.S. interest rates, and expectations for weak U.S. jobs data.

Elsewhere, easing concerns over Greece's debt problems helped the euro rise further versus the greenback, while doubts over the ability of Prudential PLC to buy part of a major U.S. insurance company lifted the British pound against the U.S. currency, dealers said.

During Asian trading hours, the dollar fell to JPY88.47, the lowest since JPY88.32 on Dec. 14. That compares with JPY88.75 in New York late Tuesday.

The euro dropped to a 9 1/2-month low against the dollar after Greece's biggest public sector union called for a 24-hour strike on March 16 to protest Athens expected plans to cut its ballooning debts. However, the euro was able to recoup some of those losses after Greek Prime Minister George Papandreou announced a cabinet meeting on Wednesday to "take decisions about the economy."

Sterling briefly hit USD1.5075 compared with USD1.4960 in New York overnight. A report in the Financial Times questioning Prudential's ability to buy the Asian operations of American Insurance Group as planned led speculators to buy the pound on the view the failure of the deal would make it unnecessary for the firm to sell a lot of sterling for dollars, three traders said.

The Australian dollar rose against the U.S. dollar Wednesday, boosted by robust local growth data, though technical factors and profit taking pushed the Australian dollar lower against the Japanese yen.

Market expectation

For EURUSD support remains in place at USD1.3615, with interest seen extending toward USD1.3600. Offers remain above USD1.3655, with further sell interest noted at USD1.3665/70. Above here and rate expected to meet further offers beginning from around USD1.3685 through to USD1.3700, with talk around of large stops placed on a break of USD1.3700.

Pound drags itself back above USD1.5000, after early Europe had squeezed longs as it took rate back to USD1.4975, extending the corrective pullback off overnight highs of USD1.5077. Offers now seen placed at USD1.5020/25 ahead of USD1.5050. A break here to open a move back toward the overnight highs, with offers noted between USD1.5075/80.

European stocks are expected to open lower Wednesday, as investors react with caution, awaiting further developments from Greece and ahead of key employment data out of the U.S.

A U.S. private-sector employment report will be issued later in the day by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers. Economists expect the data to show losses of 50,000 private-sector jobs last month, following a 22,000 drop in January.

U.S. non-farm payrolls data due Friday are likely to show a net loss of 75,000 workers in February, worse than the previous month's 20,000 decline, the economists said.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions

Comments

Add New Search

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."