Dollar strengthening on cheerful labor market data…

By IBTimes Staff Reporter | February 03 2010 2:22 PM

So far the green Benjamin remains on gaining slightly throughout the currencies market due mainly to the better-than-expected ADP Employment Change for January that showed only a drop of 22 thousand jobs, which reflected a strengthening and slender enhancement of the present overall labor sector conditions, indicating in fact that the economy cut fewer jobs than forecasted within the private sector last month.

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While, the worse than expected ISM services index did little to help, where investors remain worried over the outlook for the U.S. economy, since the recovery seems to be rather slow. Moreover, Pfizer Inc earnings disappointed investors and accordingly investors headed for low yielding assets and shunned higher yielding ones.

As a result, the euro-dollar pair continues on plummeting as it did within the prior EU session, however the pair is highly forecasted to start inclining according to the four-hour and one-hour stochastic oscillator, having the Union currency trading around 1.3903 recording a high of 1.4026 and a low of 1.3897 with a resistance at 1.4055 and a support at 1.3870.

Moreover, the pound-dollar is now plunging faintly as the dollar remains on advancing against the royal pound, having so far the pound trading around 1.5907 recording a high of 1.6068 and a low of 1.5900 with a resistance at 1.6010 and a support at 1.5850, knowing that the pair shows a tendency to climb to the upside according to the four-hour scale momentum indicators.

As for the dollar-yen pair, it is currently narrow trading between a resistance level witnessed at 92.20 and a support level seen at 89.90 and may start to slip to the downside according to the one-hour and four-hour stochastic oscillator, having the pair so far trading around 91.13 recording a high of 91.27 and a low of 90.06.