Source: ForexYard
The euro hovered near a two-month high against the USD for much of last night, following the announcement of the ECB’s new bond buying program, designed to lower borrowing costs in Spain and Italy. Also, the USD was able to maintain its gains against the JPY after the ECB news, combined with a better than expected US ADP Non-Farm Employment Change led to risk taking in the marketplace. The higher demand for the dollar resulted in downward movement for gold. The precious metal fell close to $12 an ounce last night and is currently trading at the $1692 level.
Main News for Today
US Non-Farm Payrolls/Unemployment Rate- 12:30 GMT
• The news is considered the most important event on the forex calendar and its impact is generally felt throughout the marketplace
• If the Non-Farm figure comes in above the expected 123K, the dollar may see gains against its main currency rivals including the euro, yen, Swiss franc and British pound
• If the dollar turns bullish following the news, crude oil may also see gains while gold could extend its downward trend
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