By Rita Ruvinski – The U.S currency hit a 3 month high against the Japanese yen on Wednesday as strong dollar demand from Japanese importers for financial year-end book closing triggered widespread buying. Analysts said that USD/JPY may extend its rising momentum if it manages to rise above 93 yen, which would make charts look attractive for market players to chase the dollar higher.
Against the European currency the greenback weakened to $1.3460 but still remained near 10-month high on concerns over euro zone fiscal and economic health. Signs of improvement in the U.S. economy and continuing fiscal problems in the euro zone are likely to keep the EUR subdued in the near term against the greenback.
Ahead of the highly anticipated U.S. nonfarm payrolls data due out on Friday, traders will watch the private sector ADP jobs report for March due at 12:15 GMT, with forecasts 40,000 jobs were created against 20,000 lost in February. If the forecasts prove accurate traders should start readying themselves for some strong gains as the U.S dollar may continue rising in the coming days.
Forex Market Analysis provided by Forex Yard.
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