EUR/USD at 1.1195. Investors’ eyes on US jobs report.

EUR/USD was trading around yesterday close rate of 1.1200 throughout the Asian session today. As of 3:00 AM EST the pair was trading at 1.1195.

The European Commission cut its estimates for growth in Eurozone this year. It now predicts an economic growth to be 1.7% compared with 1.8% forecast in November. The commission reported that government spending had been surprisingly high driven by a huge number of migrants arriving in Europe.

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The vice-president Valdis Dombrovskis told that, Europe’s moderate growth is confronting rising headwinds, from slower growth in emerging markets like China, to weak global trade and geopolitical tensions in Europe’s neighborhood. He also added that, it is important to continue structural reforms which will lead to the growth in economy, oppose shocks in the future and improve job opportunities. The Commission lowered its inflation forecast for 2016 from 1.0% to 0.5%, which is even further below the 2% target estimated by the European Central Bank.

Asian markets opened mostly low today. The performance of major indices is presented below:

  • Shanghai Composite lost 0.63% closing at 2,763.49.
  • Nikkei 225 finished at 16,819.59 dropping 1.32%.
  • Hang Seng was up 0.55%, closing at 19,288.17.

According to the analyst Yutaka Miura from Mizuho Securities in Tokyo, the major concern about Japanese markets now is whether USD/JPY will drop even further. “You don’t know how U.S. stocks will perform after the jobs data release, so most investors are nervous” said Miura.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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