FXstreet.com (Córdoba) - The US dollar is reversing some of
yesterday's gains after the US nonfarm payroll report which came in
slightly above expectations, but was neutral enough to offset the
hawkish tone of the Fed minutes.
The greenback strengthened on Thursday after the FOMC minutes
showed several policymakers thought it would be appropriate to slow
or stop the Fed's bond purchases programs before the end of 2013.
USD remains firmer overall, although the euro has managed to erase
intraday losses and trades little changed, while US stocks are
"Looking ahead, the reaction to today's jobs report suggests scope
for a brief period of relative market calm at the start of 2013,
which could favor equities and foreign currencies", says Nick
Bennenbroek, Head of Currency Strategy at Wells Fargo Bank. "That
benign backdrop probably won't last long however. Within a few
weeks the market's attention will likely return to the next round
of U.S. budget talks, at which point equity market and foreign
currencies will probably find the environment much more
Meanwhile the euro…
The shared currency managed to reverse early losses versus the
greenback after the NFP data. EUR/USD bounced from a 3-week low of
1.2997 and climbed toward the 1.3060 zone before finding
resistance. It was last at the 1.3035/40 area, virtually unchanged
on the day.
Technically speaking, the outlook has turned more negative,
although short-term the EUR/USD is correcting from oversold levels.
A break below 1.3000 should signal a bearish continuation, while
only a regain of the 1.3065/1.3100 area would ease the immediate
"This week's EUR/USD has reversed to-but not clearly broken-the
neckline of the head & shoulders on the weekly chart", says the
TD Securities team. "With that in mind, whether this week's close
is above 1.3010/20 is an important signal for the trend in the