Fundamental Analysis : Attention turns to today’s Non Farm Payrolls report

Posted by Forexsq 318 days ago (http://www.easy-forex.com)

Forex Market - The euro rose yesterday recovering some of its losses after the European Central Bank meeting yesterday. The ECB hiked the rates by 25 basis points to 1.50% in an effort to control the high inflation and maintain price stability. During the press conference that followed, ECB President Jean Claude Trichet said that the central bank decided to suspend the minimum rating requirement threshold for Portuguese government bonds that can be used as collateral. The comment supported the single currency as earlier this week rating agency Moody's cut Portugal's sovereign rating by four notches to Ba2 and kept it in a negative outlook. The phrase "strong vigilance" was absent but Trichet said that the central bank will monitor price levels very closely indicating that rates may go up again in the following months. Against the dollar, the euro jumped as high as 1.4373 from 1.4221.
The US dollar fell against high yielding currencies such as the Australian dollar but firmed against the safe haven Swiss franc and Japanese Yen on heightened risk appetite in the market. ADP Employment Change Data surprised investors after it revealed a rise to 157K from 70K. Focus now turns to the Non Farm Payrolls data released today at 12:30 GMT. Against the Japanese Yen, the dollar rallied to 81.40 from 80.79.