The US dollar made a strong move higher against the other major currencies, hitting a six month high against the yen and one month high against the euro. The U.S Department of Labor said the economy added 171.000 jobs in October versus forecast for an increase 125.000 and unemployment rate inched up to 7.9 percent from 7.8 percent in September.
On Wednesday, German retail sales rose 1.5 percent and on Thursday US initial Jobless claims improvement at 363k versus 371k anticipated. Later that day in the United States, Consumer Confidence at 72.2 in line with expectations and U.S manufacturing purchasing managers’ index(PMI) at 51.7 versus 51.2 expected. The dollar fell sharply against the yen on Tuesday, after easing steps announced by the Bank of Japan initially disappointed market expectations for more aggressive measures. Greek Prime Minister pledged that proposed wage and pension cuts will be the last as he struggled to win political support for measure to assure the country’s lifetime.
Data & Week Ahead
The market will likely be on edge until it learns the outcome of Tuesday’s presidential election, one of the most closely fought contests in years. In addition, rate dictions in the Eurozone, Australia and the UK are the major events for the week . On Tuesday, the Reserve Bank of Australia is to announce its benchmark interest rate and Germany is to produce official data on factory orders, -0.3 percent is predicted now from -1.3 percent in October.
Barack Obama seeks a second term and is competing against Mitt Romney, the most urgent issue is the fiscal cliff and spending cuts that will happen in 2013. On Thursday, there is some chance that the European Central Bank will cut the rates by 0.25 percent in the upcoming meeting and later that day in the United States, Trade balance deficit is expected to reach $44.9 billion from $44.2 billion.
EURUSD Weekly chart
After the touching the resistance level around 1.3015, rate fall and breakthrough 1.2930 support level and is currently testing the support level 1.28. A break and close 1.2795 targets 1.2640 level. Immediate resistance is seen around 1.2865-1.2875