The market was generally calm this morning in Asia, especially with markets in China, Hong Kong, South Korea and Singapore closed for the Lunar New Year.
Markets are calm amid jitters ahead of the jobs report from the US economy today, especially with the lack of major data from Asia and Europe today.
The Dollar held its gains ahead of the jobs report which is expected to show the strongest jobs gains in almost three months. The dollar index was flat but holding onto yesterday gains, trading at opening levels around 77.76 recording the high of 77.82 and the low of 77.71.
For the euro, the market was steady still but trading lower after yesterday's strong drop versus the dollar. The euro weakened strongly as Trichet disappointed markets and did not shift to a stronger inflation-fighting mode, suppressing expectations for action from the ECB any time soon.
The EURUSD is trading slightly lower currently at 1.3620 recording the high of 1.3640 and the low of 1.3617. The market has their eyes on the European Summit today and whether the leaders will finally reach an agreement allowing more flexibility for the European Financial Stability Facility and extending its operations into the market by buying bonds.
As for sterling, the royal pound is trading also around yesterday's closing levels, where the pair declined after strong gains recorded. The market remains focused on the nonfarm payrolls and so sterling might continue to trade with volatility especially as momentum indicators are in overbought areas over daily basis. The GBPUSD is trading around 1.6150 recording so far the low of 1.6125 and the high of 1.6160.
Meanwhile, the Japanese yen traded between gains and losses and currently around opening levels, where good Japanese earnings and rising stocks supported risk taking in Japan today. The pair recorded the low of 81.48 and the high of 81.70 and currently flat around 81.57.