EURUSD

EURUSD tests 50% of 2012 range

The dollar is up against all currencies overnight. The pair has fared the best against the GBP and the AUD as the GBP benefited from Nationwide Consumer Confidence rising and a flight out of the EURGBP and the AUD benefited from the highest employment gains since November 2010.  The Consumer Confidence in the UK rose to 47 from 38 (expected 40). This was the highest level since August 2011.  Meanwhile the Australian employment figures showed that 46.3K jobs were created which was much better than the 10K expected.  The prior month was revised down to -35.6 from -29.3 originally reported but the Unemployment rate fell to 5.1% from 5.3%.   The increase in jobs lessens the chance that the RBA will cut rates at their next policy meeting next month.  At the last meeting the central bank surprised the market by keeping rates unchanged.  In Europe today, the Greece situation continues. Talk of a putting a technocrat government in charge (similar to Italy) was being bounced around as political tensions within could make negotiating a solution difficult.  In debt auctions, France sold 10.155 Euros of bonds with varying maturities while Spain (recently downgraded by Moody’s, sold 4.07 billion of bonds maturing in 2015 and 2019.  France’s 2 year yields declined versus the last auction (from 0.89% vs 1.05%). Spains yield on bonds maturing in July 2015 rose to 3.332% from 2.861%  in an comparable early Feb auction.  The demand was higher at the higher yield.   From a technical perspective, the EURUSD is testing the 50% of the 2012 range at the 1.29178 level in early NY trading

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