By: Barbara Zigah
Finding support from Greek bailout hopes and the likelihood of more weak labor data from the U.S., the Euro earlier struck a 1-month peak against the U.S. Dollar. Wednesday’s ADP jobs report, which was far worse than analysts had anticipated, is being used to gauge today’s release of U.S. Labor Department private sector payrolls. A consensus of economists expects that report to show only 150,000 new jobs were added in May, revised lower from previous predictions given the ADP data. With the U.S. Dollar already under pressure, a negative outcome will likely send the greenback broadly lower signaling as it does that the recovery of the U.S. economy has hit a stumbling block.
As reported at 2:21 p.m. (JST) in Tokyo, the Euro was trading against the greenback at $1.4484, coming off a 1-month peak of $1.4518 struck on the EBS trading platform. Analysts report that the Euro is likely to see resistance at $1.4570, and if surmounted, the next resistance level lies at $1.4710.
Recent soft data from the U.S. has given rise to talk that the Federal Reserve might implement yet another quantitative easing program at the conclusion of QE2. However, one Federal Reserve branch president commented that new measures are unwarranted at this time.
Euro Strikes 1-month Peak Ahead of U.S. Labor Data
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.