RESEARCH VIA I FOREX REPORT 09 JUNE 2014

DAILY CURRENCY UPDATE

•  Dollar mixed vs. rivals ahead of U.S. nonfarm payrolls

The dollar was mixed against the other major currencies on Friday, as sentiment on the greenback remained vulnerable ahead of a highly anticipated report on U.S. nonfarm payrolls after Thursday's disappointing jobless claims data.
 
The dollar was higher against the euro, with EUR/USD down 0.20% to 1.3636.
 
Speaking at the ECB’s post-policy meeting press conference, Draghi also said that the central bank we will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs), to support bank lending.
 
The comments came after the ECB lowered its benchmark interest rate to a record-low 0.15% from 0.25%, compared to expectations for a cut to 0.1%.

•  GBP/USD edges lower after U.K. trade data

The pound edged lower against the U.S. dollar on Friday, weighed by the release of downbeat U.K trade balance data, while investors turned their attention to an upcoming U.S. nonfarm payrolls report.The pair was likely to find support at 1.3562, the low of February 12 and resistance at 1.3668, the high of May 27.

GBP/USD hit 1.6802 during European morning trade, the session low; the pair subsequently consolidated at 1.6807, edging down 0.08%.
 
Cable was likely to find support at 1.6723, Thursday's low and resistance at 1.6882, the high of May 27.
 
Official data showed that the U.K. trade deficit widened to £8.92 billion in April, from £8.29 billion in March, whose figure was revised from a previously estimated deficit of £8.48 billion. Analysts had expected the trade deficit to widen to £8.65 billion in April.

•  EUR/USD steady, recovers from ECB announcements

The euro was steady against the U.S. dollar on Friday, as the single currency recovered from Thursday's announcement of a new series of measures by the European Central Bank, including a 0.10% rate cut.
 
EUR/USD hit 1.3654 during late Asian trade, the session low; the pair subsequently consolidated at 1.3651, easing 0.06%.
 
The pair was likely to find support at 1.3589, the low of June 3 and resistance at 1.3723, the high of May 21.
 
The euro dropped to a four-month low against the dollar on Thursday after ECB President Mario Draghi said that the bank is prepared to act swiftly with further monetary easing measures, including asset-backed security purchases, in case of a prolonged period of low inflation.
 
Speaking at the ECB’s post-policy meeting press conference, Draghi also said that the central bank we will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs), to support bank lending.

•  Aussie dollar down after construction data, U.S. jobs awaited

The Australian dollar weakened in early Asian trade Friday after laclustre construction sector data with the market focused on U.S. jobs data later in the day.
 
Australia's AI Group/HIA Construction Index for May rose to 46.7, with the last reading in April coming in at 45.9, just off the Feb low at 44.2.
 
"The rebalancing of the construction sector is gathering pace with a further decline in engineering construction in May partially offset by healthy expansions in house and apartment building," AI Group Director of Public Policy Peter Burn said.
 
"Encouragingly, new orders in these residential sub-sectors are also on the rise although the easing of residential building approvals in recent months may temper medium-term expectations."

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