The hectic week is awaiting the grand finale and the bottom line closure to end the long anticipation and the anxiety that controlled the market the entire week. Investors already priced the data and the slowing recovery of the US economy, which resulted in heavy movement across the FX market. Investors unwound their optimism and trust in the US economy and oppositely unwound the pessimism over the outlook for debt-laden Europe.
The dollar index is trading with sideways bias following yesterday extensive losses. The index opened today at 84.49 setting the high of 84.74 and the low at 84.46 and currently trading around 84.56.
The euro advanced on the back of the dollar's softness and also on eased fears over the outlook as investors exhale their negativity with rather stronger than expected positioning for euro area banks. The pair ended yesterday below the 1.2560 resistance at the 38.2% correction for the downside wave which started from 1.3678 towards the trough at 1.1874 over daily basis. The pair is trading steadily biased sideways following yesterday's surge and consolidating ahead of the nonfarm payrolls from the US. The pair is seemingly biased lower among the support area at 1.2495 and resistance at 1.2530 over four-hour basis. The pair so far set the high of 1.2532 and low of 1.2480.
As for sterling, the pound versus the dollar is still hovering around its highest in two months on the back of the dollar's weakness. The pair is trading in a tight range ahead of the US infamous labor report. The GBPUSD pair opened at 1.5173 recording so far the highest of 1.5213 and low of 1.5148 and currently trading midrange around 1.5205.
The USDJPY fluctuated since this morning recording the peak at 88.20 and reversing lower towards 87.87, slightly off lows set at 87.75.