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3 May 2013
Forex: EUR/USD above 1.3100 ahead of EU economic growth forecasts
FXstreet.com (Barcelona) - The EUR/USD was trading sideways around 1.3065 ever since the plunge on ECB Draghi’s press conference, admitting the readiness for negative deposit rates if needed, but money flows ahead of the European opening allowed a move back to 1.3100 ground as investors price in expectations ahead of the economic growth forecasts by the European Commission. The pair is pushing higher and has printed a high at 1.3116, for now.
The main attraction of the day remains the US nonfarm payrolls report: “Consensus forecasts at 145k drifted lower after the ADP report of 119k and our standing estimate of 162k looks admittedly toppish. Even if we are right, it would still represent a deceleration in job growth. The jobs number will be weaker than recent trends, even if odds favor a bounce higher in April”, wrote TD Securities analyst Alvin Pontoh.
“A break back below the short term uptrend at 1.3061 and a fall through the 55 day moving average at 1.3030 is still needed to confirm a trend reversal lower”, wrote Commerzbank analyst Karen Jones, pointing to 1.3225/43 as resistance.
The main attraction of the day remains the US nonfarm payrolls report: “Consensus forecasts at 145k drifted lower after the ADP report of 119k and our standing estimate of 162k looks admittedly toppish. Even if we are right, it would still represent a deceleration in job growth. The jobs number will be weaker than recent trends, even if odds favor a bounce higher in April”, wrote TD Securities analyst Alvin Pontoh.
“A break back below the short term uptrend at 1.3061 and a fall through the 55 day moving average at 1.3030 is still needed to confirm a trend reversal lower”, wrote Commerzbank analyst Karen Jones, pointing to 1.3225/43 as resistance.