EUR/USD opened in Asia at $1.2789 having been as low as $1.2770 ahead of the NY close, amid a heavy tone following strong ADP jobs data, with investors now seemingly preferring the USD over European and emerging assets. Fears that European banks may need some fresh capital, concerns over Hungary, and a possible French downgrade are all destroying any risk appetite in the market. EUR was tightly pinned into a $1.2783-99 range with traders now cautious ahead of Monday’s Sarkozy/Merkel meeting. GBP was a similar story hovering between $1.5490-5508, with the cross even tighter through stg0.8250-57. USD/JPY held up above Y77 overnight but failed to make any significant upward progress edging up to Y77.21 from Y77.07 with the cross marginal firmer through Y98.58-79. AUD faired little better trading $1.0240-65 as the market generally puts itself on hold ahead of this afternoon’s US non farm payroll data, where expectations are for a stronger number in excess of 150k.
EasyForexNews Research Team