The week begins once again with global economic growth in front and center after official Chinese government reports showed the China’s GDP only grew by 7.7% disappointing expectations of 8% and missing even the previous reading of 7.9%.
I want to provide a follow up and update readers on the Japanese yen. Earlier in the week we took a look at effects the Bank of Japan’s aggressive bond action had on the USD/JPY (yen). In that Monday post we explored the sharp move higher in the session into the BOJ statement to through Monday afternoon.
During periods of time when traders are staring out across the FOREX markets during a global currency wars especially with the huge easing measures the Bank of Japan began this week.
As we begin a new week and the start of earnings seasons the U.S. dollar jumped to nearly to 4 year highs against the Japanese yen as Japan’s central bank began its new monetary stimulus program.
U.S. Non-Farm Payroll disappoints with only 88k of new job creation. It’s the lowest jobs number since June and the largest miss in nearly 2 years. Analysts were expecting an increase of 200k for the month of March after a February’s 268k results.
This morning the euro including the EUR/USD was under pressure over concerns of deteriorating economic conditions in the euro zone and Cyprus and European Central Bank’s policy decision.
The technicals are in control of gold futures today as price hits a 5 week low on technical selling after the shiny metal crossed below the 21 and 30 day moving averages.
The EUR/USD jump during the Asian session above the 1.30 level on the news of a Cyprus bailout plan early Monday morning ahead of the European leaders’ deadline of Monday’s close of business.
The Aussie dollar is slightly weaker on the day after hitting a month high and consequentially resistance yesterday. The pair is feeling pressure from financial banking crisis in Cyprus as sentiment flows from riskier currencies to safety currencies such as the U.S. dollar.
The euro remains under pressure against U.S. dollar as well as the major currencies, albeit it’s off the lows from the European session as traders continue to focus on the euro zone crisis and the latest shoe falling “Cyprus”.