Markets ended the week in Asia close to elevated New York highs in what was a relatively quiet session ahead of tomorrow’s NFP employment data and a long holiday weekend in the US. The EUR/USD had a dynamic move overnight encompassing a three big figure trek higher to 1.2500. With the weakened state of the dollar, the Euro remained elevated above the 1.2500 mark for the better part of the session, only faltering after comments were made out of the Euro Zone that the possibility of policy changes that would allow for the insolvency of a member country weren’t out of the question at this point. Otherwise, the pair remained within its 1.2530 and 1.2480 range.
Yen crosses were all noticeably firmer, with the EUR/JPY over the 110.00 mark, the GBP/JPY above 133.50, and the AUD/JPY popping over 75.00 although only momentarily. The yen and the dollar ended the week on the defensive, the dollar damaged by the perception that the US economy is faltering amidst record government spending.
The other prime mover today was the Australian dollar, which had solid gains after the government came to concessions with the mining industry over the proposed mining tax. After a run up to 0.8510 the pair lost steam as traders were unwilling to hold risk position heading into the US employment data later in the day. Tomorrow at 12:30GMT will see the release of the US employment change which is projected to show -106,000 jobs lost as opposed to last month’s gain of 431,000 jobs. The Unemployment rate which is expected to raise 0.1% to 9.8% will follow. This data will probably be the risk event of the week and care should be taken heading into this data. As well, keep in mind that the US will be out for a three day weekend in celebration of the 4th of July Independence Day holiday. Have a great weekend.