Hirose News|August 6, 2012 10:22 AM

FX Weekly Update




U.S. unemployment rate is 8.3%, not much different from the estimation of 8.2%, but NFP is much better than expectation (163,000 people compared to estimation of 100,000 to 110,000), leading to the buying of the dollar. However, Japan's need for selling dollar keeps the dollar below 79's. Since there is a long vacation in Japan next week, plenty of selling order will be placed between 79's and 80. On the other hands, the dollar didn't fall greatly in last week since Japan may intervene at 77's, and thus Dollar/Yen will keep fluctuating.



Expected Range: 77.60-79.50  Sell the dollar if you would like to trade






Although investors closed their selling positions of Euro/Dollar and bought the dollar since Draghi stated clearly that he will supports the Euro, nothing real has been done afterward, making the euro fell to about 1.2150. Employment data should give support to the dollar, but as the last month data was amended and by the high stock price, the euro rose against the greenback up to 1.2393. Nevertheless, there is a resistance level above 1.245 - 1.250, which constrain the rise of the euro. The euro will be sold from 1.24's if problem of Greece and Spain turn up again.



Expected Range: 1.2080-1.2480  Sell the euro on rallies

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