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Sunday, January 10, 2010

EUR/USD Ignores Economic Data Ahead of U.S. Nonfarm Payrolls

Even More.....Oh Boy....

EUR/USD has largely ignored a series of mixed economic data for the region on Friday, as markets await nonfarm payrolls.

Ahead of the key economic release for the United States, EUR/USD traded lower by 15 pips at 1.4291.

The moves come after a barrage of economic news for the region, including final Q3 euro zone GDP being unrevised, with the economy growing 0.4% quarter-over-quarter, as expected. Annual growth, however, was revised lower by 4.1% despite calls for no change to the preliminary reading of a 4.0% pullback.

Meanwhile, the Euro zone unemployment rate rose to 10.0% in November from the upwardly revised 9.9%. Forecasts had been for an increase to 9.9% from an unrevised 9.8% level.

Over in Germany, the trade surplus surged to €17.4 billion in November, above calls for a decline to €12.5 billion from €13.4 billion the month prior, with exports up 1.6% month-over-month, faster than forecasts for a 0.8% increase but slower than October’s 1.9% pickup.

Also, German industrial production advanced 0.7% month-over-month in November, short of calls for a 1.0% increase and faster than October’s 1.7% pullback. Annual production down 8.0%, faster than calls for a 7.8% fall, but slower than the prior 12.3% contraction.

So far today, EUR/USD has traded in a range of 1.4276 to 1.4335 so far today. Short term support lies at 1.4258 with resistance at 1.4484.

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