The common currency is on track to record its best week in the past month, moving past key resistance levels as FX traders count on further declines in the greenback. Thus far in the week, the Euro is up nearly 1.5% against the US Dollar after breaching the $1.20 level. The Euro is also seeing a strong showing against the safe haven Japanese Yen; the Euro is likely to record its best week over the last six months. Currency strategists say that the Dollar's decline is largely a factor of monetary policy decisions from the Federal Reserve, coupled with growing concerns over the economic impact that the Coronavirus is having given the absence of a cohesive strategy to slow the spread of the virus.
At 11:19 am in Tokyo trading, the EUR/USD was trading lower at $1.2141, down 0.0198% and sliding from the session peak of $1.21543; the recorded session low remains above the key threshold at $1.21375. The EUR/JPY was trading at 126.0710 Yen, down 0.0325%; the pair has ranged from a trough of 126.035 Yen to a high of 126.231 Yen.
Markets Focus on US Labor Report
Looking ahead in the trading day, FX market players will be focusing on the US Labor Department's release of Non-Farms Payroll numbers for November. Analysts are predicting that the NFP will have declined to 469,000 new jobs for the month, down from the October's 638,000. The unemployment rate is also likely to fall to 6.8%, according to the latest poll, down from 6.9%. Average hourly earnings on a month-over-month basis are predicted to be flat at 0.1%, and 4.3% on a year-over-year basis, down from 4.5%. On Wednesday, the ADP Employment Change report showed a decline in new private sector jobs; analysts had predicted a slight rise to 410,000, while the numbers reported showed a sharp drop to 307,000.