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5 Apr 2013
Forex: EUR/JPY extends gains above 126.00 on Yen selling
FXstreet.com (Barcelona) - The EUR/JPY is continuing its climb higher as the Yen is becoming cheaper and cheaper on the BoJ aggressive easing announced this Thursday. The cross moved to 126.47 high already and its trading range surpassed 700 pips in the last two days. Also, he market is increasingly closer to February and 2013 high at 127.70.
The March NFP came in much lower than the expected 200K, pointing to 88K added jobs. However, the February data was revised higher, from 236K to 268K. US average hourly earnings came in at 0.0% (consensus of 0.2%) and average weekly hours at 34.6 (consensus of 34.5). The unemployment rate in the US dropped unexpectedly from 7.7% to 7.6% in March. The US trade deficit narrowed from $-44.45B to $-43.00B (consensus of $-44.60B). Japan’s leading economic index in February rose from 95.0 to 97.5, while the coincident index came in higher from 91.6 to 92.1.
The first reading for GDP Q1 2013 came in at -0.6%. EMU retail sales contracted by -0.3% in February, more than the -0.2% expected and after a +1.2% rise in the previous month. The annualized figure rebounded from -1.9% (revised from -1.3%) to -1.4%, while market consensus was pointing to -1.8%. German Factory orders came in at +2.3% (MoM) and 0.0% (YoY) from -1.6% and -2.1%, respectively, surprising investors that were expecting +1.2% and -1.5%. The ECB announced LTRO repayments of €8.064bn from 20 banks, with the amount split roughly evenly between the first and second LTROs.
Mataf.net analysts point to resistance at 126.40, while supports are at 123.90, 123.45 and 121.60.
The March NFP came in much lower than the expected 200K, pointing to 88K added jobs. However, the February data was revised higher, from 236K to 268K. US average hourly earnings came in at 0.0% (consensus of 0.2%) and average weekly hours at 34.6 (consensus of 34.5). The unemployment rate in the US dropped unexpectedly from 7.7% to 7.6% in March. The US trade deficit narrowed from $-44.45B to $-43.00B (consensus of $-44.60B). Japan’s leading economic index in February rose from 95.0 to 97.5, while the coincident index came in higher from 91.6 to 92.1.
The first reading for GDP Q1 2013 came in at -0.6%. EMU retail sales contracted by -0.3% in February, more than the -0.2% expected and after a +1.2% rise in the previous month. The annualized figure rebounded from -1.9% (revised from -1.3%) to -1.4%, while market consensus was pointing to -1.8%. German Factory orders came in at +2.3% (MoM) and 0.0% (YoY) from -1.6% and -2.1%, respectively, surprising investors that were expecting +1.2% and -1.5%. The ECB announced LTRO repayments of €8.064bn from 20 banks, with the amount split roughly evenly between the first and second LTROs.
Mataf.net analysts point to resistance at 126.40, while supports are at 123.90, 123.45 and 121.60.