The pair is trading near a multi-year high in Asia, buoyed by renewed confidence in the outlook for the U.S. economy and receding concerns about the debt crisis in Europe and the region’s economy. The Chicago Report showed that its business barometer rose to 55.6 this month, the highest since April, after 50 in December, while Chicago PMI rose to 55.6 in January from 50.5 last month, adding to signs that the U.S. economy is recovering. Investors now await the incoming U.S. data for implications for the U.S. economy and the monetary policy. Non-farm payrolls, due Friday, are forecast to have increased 160,000 in January, up from +155,000 in December, while the ISM manufacturing index, due also Friday, is expected to have climbed to 51.0 in January from 50.2 in December. In Europe, data showed that German unemployment unexpectedly fell in January, adding to signs of emerging recovery of the region’s largest economy. The yen on Thursday reached Y91.59 against the dollar, the lowest level since June 2010, while sliding to Y124.32 against the euro, the least since May 2010. The rate moved from Y90.75 to Y91.59 on Thursday.
EasyForexNews Research Team