The US dollar advanced against the Japanese yen after upbeat labor data from the US which showed that employers shed fewer workers last month.
The news showed that 54,000 jobs were lost beating estimates of 105,000 while the prior reading was revised down to 54,000 from 131,000. On the other hand, unemployment rate remained at 9.5%, in line with medina estimates.
This news continued the optimistic news released since the beginning of the week which reflected some improvement after the parade of downbeat data released recently from the United States.
However, the major effect appeared on fast moving pairs mainly currencies trading against the Japanese yen while EUR/USD pair and GBP/USD were slightly affected by the news.
The dollar index, which tracks the dollar movements against six major currencies, retreated to 82.24 compared with the day's opening at 82.39.
With regard to the dollar-yen pair, it advanced on the daily basis to a high of 85.22 then retreated to 84.98. Today, the dollar may start to rebound against the yen as expected by some analysts after dropping to 15-year low against the yen in the wake of slow US growth and amid the absence of intervention from the BoJ to weaken its currency.
The pair recorded a low of 84.14 earlier today of 84.55, while support is seen at 83.85 while resistance is at 85.40.
Concerning the euro-dollar pair, it rose after the news as optimism enhanced demand on higher-yielding currencies. Today, PMI services showed further expansion to 55.9 in August from 55.6 in July which increased confidence in the euro zone after the raise in growth forecasts yesterday by Trichet in the press conference following the rate decision.
So far the pair is trading at 1.2862, touching a high of 1.2874 and a low of 1.2806, while for the rest of the day the pair is expected to move between support and resistance at 1.2770 and 1.2900 respectively.
Turning to the sterling-dollar pair, it is showing incline on the daily charts despite the drop in PMI services to 51.3 in August from 53.1 in July boosted by the stellar jobs report.
The royal pair is currently trading at 1.5434 after visiting a high of 1.5465 and a low of 1.5386, whereas it is expected to move between support at 1.5385 and resistance at 1.5500 for the rest of the day.