Forex: EUR/USD retreats from highs, around 1.3110

After printing fresh weekly highs above 1.3130, the single currency is now giving away part of those benefits back to the region of 1.3005/10, ahead of the labor market data in the US economy. Prior surveys expect the Non-farm Payrolls to climb to 160K in February, up from January’s 157K, and the unemployment rate to stay put at 7.9%.

At the moment, the cross is up 0.01% at 1.3108 facing the next hurdle at 1.3163 (high Feb.28) followed by the psychological level at 1.3200 and then 1.3269 (Ichimoku Cloud base).
On the flip side, a breakdown of 1.3058 (MA200h) would aim for 1.3054 (MA200h) and then 1.2970 (low Mar.7).

Mar 8, 2013

European markets resume yesterday's sentiment, US futures up ahead of NFP

The German DAX 30 (+0.73%), the French CAC 40 (+1.02%), the Italian FTSE MIB (+1.14%) and the Spanish IBEX 35 (+1.60%) edge higher as risk sentiment takes over the market again after yesterday's upbeat speech by Mario Draghi and ahead of US nonfarm payrolls. Markets don't seem much concerned with falling imports in China, even more than expected, from +28.8% to -15.2%, instead of -8.8% (YoY). China surpassed the US recently as the biggest economy in the world.

Forex: USD/JPY extends gains to fresh 3 ½-year high

The dollar continues to advance against the yen, having posted a fresh 3 ½-year high as investors wait the US jobs reports due for release at 13:30GMT.