The Euro continued to slide and was headed near to a 3½ month trough as investors ponder the next steps of the European Central Bank. Unexpectedly weak economic data has also helped to put a dent in investor sentiment with many believing that the central bank may not be so quick to rein in the stimulus program it has long enacted. Market players are also awaiting the conclusion of the upcoming Federal Reserve Bank policy meeting; while economists don’t expect an interest rate adjustment the language will be scrutinized for any change on the US economic outlook.
As reported at 10:50 am (BST) in London, the EUR/USD was trading at $1.20, down 0.35%; the pair has ranged from a session trough of $1.20278 to a peak of $1.20842. The EUR/GBP is trading at 0.8785 Pence, up 0.14%; the pair earlier hit a peak of 0.88049 Pence while the low is at 0.87611 Pence.
Markets Look Ahead to NFP
Markets will also be carefully watching Friday’s release of private sector jobs data as evidence that the US economy is strengthening. A recent survey of economists shows that most believe 193,000 new jobs will be reported for April, up from 103,000 in March, while the unemployment rate is forecasted to drop to 4.0%. April’s average hourly earnings (year-over-year) is likely to be unchanged at 2.7%, according to the poll.