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Euro falls on rate outlook, while the dollar reverses its two day drop against majors

Published 03/30/2011, 07:53 AM
Updated 03/30/2011, 07:56 AM
EUR/USD
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GBP/USD
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USD/JPY
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The single currency ascended for the first time in two-days after better than expected data emerged from the US in regards of growth where the economy expanded by 3.1 percent during the fourth-quarter of this year.

The US dollar index, which tracks the performance of the currency against six-majors rose on the daily scale to 76.21, compared with the opening levels of 76.13, while setting a high of 76.39 and a low of 76.07.

Meanwhile, investors await the release of ADP report that will provide a slight peek on what to expect when the infamous jobs report is released later this week.

The euro fell as confidence dropped in the Euro-Zone in March, affected by MENA unrest that drove demand for safety higher along with Japan’s earthquake that damaged global recovery.

The EUR/USD pair traded lower but remained above the pivot support at 1.4030, where it’s trading at 1.4089. This is compared with the opening levels of 1.4112 while the pair set the highest at 1.4127 and the lowest at 1.4056.

Further bullishness is expected as far as trading remains intact above 1.4030 with targets set at 1.4170 on the daily chart.

Lack of data from UK boosted the pound against the dollar as a correction for the severe fall it witnessed last week and ahead of retail sales report. The GBP/USD pair is trading at 1.6047, compared with the opening levels of 1.6007 while setting a high of 1.6081 and a low of 1.5977. The pair’s trading is bounded by the support at 1.5961 and the resistance at 1.6105.

As demand for safety declined, the yen weakened against the dollar, boosted by stocks incline in Asia. Data from the US signal that the private sector in the world’s leading economy may add more jobs while Treasury purchases from the Fed may not be completed on signs of strengthening recovery in the U.S.

The USD/JPY pair traded higher at 83.07, compared with the opening levels of 82.46 while setting a high of 83.18 and a low of 82.35.

The pair’s trading is bounced by the support at 82.50 and the resistance at 83.50


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