Though the European continent lacked major fundamentals today, and despite the importance of the income report from the US, the attention is ultimately towards Friday’s US jobs jamboree. The sentiment is still fragile and jittery with the ongoing European debt crisis, especially after last week’s Feds signal that the crisis has downside effects of the US recovery which now all eyes are focused on.
The euro today was trading with bearish tendencies as investors continue to be focused on the repercussions of the debt crisis and the downside effects of the austerity measures on growth. Adding to that, the unexpected decline in M3 money supply added to the jitters that the financial system might be crippled once more as risk aversion and tighter government policies choke liquidity. The euro declined from its highest recorded versus the dollar at 1.2397 to the lowest at 1.2328 and still trading to the downside versus greenback, though in general the dollar remains on the receiving end if we take into consideration the short term trend over the past two weeks. The pair is currently trading among the support at 1.2280 and resistance at 1.2400.
As for sterling, it is still preserving its bullishness versus the dollar, preserving the push received from the strong spending cuts by the government and the austerity measures which eased the locked fears over UK loosing its top credit rating. Sterling is trading versus the dollar today among 1.5010 support and 1.5080 resistance.
On the other hand, the Japanese yen trended lower for the dollar, where the USDJPY pair inclined from 89.22 towards 89.46 which is a slight advantage for the dollar that has been trending lower versus the yen in the past four days. Despite the slightly upside movement that is seen for US indices futures anxiety is still evident in the market. The pair is trading among 89.15 support and 90.20 resistance with a bias towards the US dollar.