Source: ForexYard
The euro extended its bearish trend during overnight trading, as a decrease in euro-zone growth forecasts continued to weigh down on the common-currency. The EUR/USD, currently trading below 1.2940, has fallen close to 140 pips since mid-day trading yesterday.
The US dollar took slight losses against the Japanese yen during Asian trading, but was able to largely maintain its recent gains as investors hesitated to open large positions ahead of key US employment data today. The USD/JPY, currently trading at 82.38, fell some 15 pips last night.
Main News for Today
ECB President Draghi Speaks- 10:00 GMT
• The euro turned bearish yesterday largely due to speculations that the ECB is considering an EU interest rate cut due to decreased economic growth expectations
• Any mention of a possible interest rate cut in Draghi’s speech today could result in additional euro losses
US Non-Farm Employment Change- 13:30 GMT
• The Non-Farm Employment Change is widely considered the most significant event on the forex calendar
• Analysts are forecasting today’s indicator to come in well below last month’s
• Any worse than expected news could result in losses for higher-yielding assets, including the euro, gold and crude oil
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