Euro slips before non-farm payrolls

The euro is in the red versus the US dollar ahead of the non-farm payrolls report at 1.30pm (London time).

The euro is hovering above the $1.37 mark, and is extending its losses from yesterday when even the mention of quantitative easing by Mario Draghi drove the currency lower. It has not been a good week for the euro following the lowest inflation rate since 2009, with declining growth and worse than expected levels in the services purchasing managers index contributing to the downward move.

The consensus is for an increase of 200,000 new jobs to be added to the payrolls. The Federal Reserve has already tapered its stimulus package twice in the past six months and there have been suggestions of rate increase in 2015. This has pushed the US dollar higher in recent trading sessions.

If the non-farm payroll report exceeds the 200,000 estimate, the euro could move towards the 200-day moving average of $1.3598. If the report is softer than expected it could head towards the longer/medium-term target of $1.38 mark that Alastair McCaig previously mentioned.


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