Forex - Dollar weakens ahead of release of May jobs report

The dollar fell against most major currencies on Thursday as investors avoided the greenback ahead of the release of the May unemployment report on Friday.

Weeks of conflicting data have investors unsure as to whether or not the Federal Reserve may wind down stimulus measures soon.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery.

Fed officials have said they will pay close attention to the labor market before deciding on any policy shifts.

In U.S. trading on Thursday, EUR/USD was up 1.16% at 1.3243.

In the U.S. earlier, the Department of Labor said the number of people who filed for unemployment assistance last week fell by 11,000 to 346,000 compared to expectations for a decline of 12,000 to 345,000.

Jobless claims for the preceding week were revised up to 357,000 from a previously reported increase of 354,000.

The data clouded market expectations as to when the Federal Reserve will begin to scale back stimulus measures.

Weeks of stronger-than-expected economic indicators have sent the dollar gaining at times on hopes the Fed will let the U.S. economy stand on its own two feet, while disappointing figures have had the opposite effect.

Investors avoided the greenback ahead of Friday's release of official unemployment figures, while the euro saw demand after the European Central Bank hiked its 2014 growth forecast.

The ECB left its benchmark interest rate unchanged at 0.5% and left deposit rates at zero.

ECB President Mario Draghi said the eurozone economy should contract by 0.6% in 2013 compared with a 0.5% contraction forecast made in March.

However, the European monetary authority hiked its 2014 growth forecast to 1.1% from 1.0%, which gave the euro support.

The greenback, meanwhile, was down against the pound, with GBP/USDtrading up 1.30% at 1.5607.

In the U.K. earlier, the Bank of England left benchmark interest unchanged at 0.5% and made no changes to policy.
The dollar was down against the yen, with USD/JPY down 2.03% at 97.05, and down against the Swiss franc, with USD/CHF trading down 1.33% at 0.9298.

The yen served as the safe-haven of choice amid the dollar's decline amid views the Japanese currency is oversold.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.82% at 1.0259, AUD/USD up 0.70% at 0.9609 and NZD/USD trading up 0.75% at 0.8030.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.28% at 81.51.

On Friday, investors will trade on May's nonfarm payroll numbers and the headline unemployment rate.

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Forex Daily Outlook June 6 2013

Unemployment Claims in the US and Asset Purchase Facility in the UK are the major market-movers. Let see what awaits us today.

In the US, Unemployment Claims, weekly indicator to value the individuals who filed for the first time for unemployment insurance, 345K is likely similar to the last time.

In Canada, Stephen Poloz, Bank of Canada (BOC) Governor, is about to speak in Ottawa.

Later in Canada,  Ivey Purchasing Managers’ Index (PMI), Survey to rate the business conditions like employment, new orders, supplier deliveries and inventories, 52.2 points is due now from 55.3 points on the last time.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe, German Factory Orders, important indicator to value all the manufacturer`s new purchase orders -1.0% is forecasted now from 2.2% on May.

Later in Europe, European Central Bank (ECB) Press Conference, primary method to communicate with investors regarding monetary policy. While on the Minimum Bid Rate 0.50% is likely with no change from the previous reports.

Finally in Europe, German Trade Balance, value the difference between imported and exported goods, 16.5B is due now from 17.6B on May.

For more on the Euro, read the Euro to dollar forecast.

In Great Britain, Asset Purchase Facility, the Total value of money the Bank of England (BOE) is likely to create and use for purchasing open market assets, 375B is due with no change from the last report.

Later in Great Britain Monetary Policy Committee (MPC) Rate Statement, MPC primary tool uses to communicate with investors on monetary policy and discusses the economic outlook of future votes. While on the Official Bank Rate 0.50% is due with no change from the last time.

Finally in Great Britain, Halifax House Price Index (HPI), value the price change of homes that were financed by Halifax Bank of Scotland (HBOS), rise up to 0.2% is due now from 1.1% on May.

Read more about the Pound in the GBP/USD forecast.

In Switzerland, Consumer Price Index (CPI), measures the consumer`s price change of goods and services, rise up to 0.1% is calculated this month.

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Gold futures edge lower ahead of ECB, U.S. jobs data

Gold futures edged lower in rangebound trade on Thursday, as investors looked ahead to the European Central Bank meeting later in the session.

Market players were also awaiting data on U.S. jobless claims later Thursday to assess the strength of the U.S. economy and the need for further stimulus from the Federal Reserve.

Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,392.55 a troy ounce during European morning hours, down 0.4% on the day.

Comex gold prices held in a range between USD1,391.25 a troy ounce, the daily low and a session high of USD1,403.55 a troy ounce.

Gold futures were likely to find support at USD1,355.55 a troy ounce, the low from May 23 and near-term resistance at USD1,421.25, the high from May 31.

The ECB was not widely expected to make any changes to monetary policy at its monthly meeting later Thursday but the bank’s post-policy meeting press conference with President Mario Draghi would be closely watched.

Meanwhile, in the U.S., data on Wednesday showed that the U.S. private sector added fewer-than-expected jobs in May, dampening expectations that the Federal Reserve would start to unwind its asset purchase program this year.

Payroll processor ADP said U.S. non-farm private employment rose by a seasonally adjusted 135,000 last month, below expectations for an increase of 165,000. 

The data is sometimes seen as an indicator of Friday’s closely watched government report on nonfarm payrolls.

Elsewhere on the Comex, silver for July delivery dipped 0.6% to trade at USD22.33 a troy ounce, while copper for July delivery fell 0.85% to trade at USD3.343 a pound.

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Forex Trading Signal for 6th June 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

Up Trend :

 (1) BUY

E/P: 1.30906

T/P: 1.31200

S/L: 1.30500

 (2) BUY

E/P: 1.31097

T/P: 1.31300

S/L: 1.30700

GBP/USD

UP Trend:

(1) BUY

E/P: 1.53721

T/P: 1.54100

S/L: 1.53300

(2) BUY

E/P: 1.54246

T/P: 1.54500

S/L: 1.53900

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Forex Trading Signal for 5th June 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

Up Trend :

 (1) BUY

E/P: 1.30785

T/P: 1.31200

S/L: 1.30300

GBP/USD

UP Trend:

(1) BUY

E/P: 1.53110

T/P: 1.53500

S/L: 1.52600

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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