Eyes Turn To The US Jobs Data

The euro fell after China released worse than expected Non-Manufacturing PMI figures during the Asian session. After the German Chancellor’s visit to China, Chinese Premier said that China is considering a greater involvement in the EFSF and ESF channels. A successful bond auction from Spain helped the euro after Spanish bond yields fell below 5%. Against the greenback, the single currency fell to 1.3085 and later it rebounded to 1.3186. Versus the Swiss franc, the single currency edged higher today to 1.2060 after the Swiss National Bank Chairman said that the central bank is ready to act in order to defend the cap of 1.20 francs to the euro.

The US dollar appears softer today as the market is expecting the US Non Farm Payrolls data. Investors expect data to show that the US economy created 150 thousand jobs in January down from the previous month’s 200K. The unemployment rate is expected to remain unchanged at 8.5%. Federal Reserve Chairman Ben Bernanke testified before the House Budget Committee yesterday and his dovish tone weighed on the greenback. He said that the economy has shown some signs of improvement but the pace still remains frustrating slow adding more on speculation for a third round of quantitative easing. Versus the Japanese yen, the dollar is still hovering above key levels falling as low as 76.04 and with the US jobs data due later today concerns for an intervention by the Bank of Japan are heightened.

The Australian dollar dropped against the greenback today after poor data from Australia’s largest trade partner, China. Chinese non manufacturing PMI dipped by more than expected in January weighing on demand for riskier assets. The pair rose to 1.0671 from 1.0756 traded yesterday.

Oil prices fell sharply to 95.40 dollars a barrel from 97.95, a decline of 2.6%. Gold edged higher to 1761.00 dollars an ounce from 1741.10. Silver also edged higher to 33.38 dollars an ounce from 33.45.

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