05, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar falls again, while traders are waiting for the decision of ECB and the nonfarm payrolls report in the U.S.

The Portuguese government is politically unstable; Egypt is facing the threat of a new coup.
The dollar fell below 100 yen barrier on Wednesday and showed a mixed dynamic against other major currencies. Meanwhile, the traders were preparing to face results of the European Central Bank monthly policy meeting scheduled for Thursday, as well as on the US non-farm labour statistics for the month of June that is expected to go public on Friday.

All these events are happening in time of growing geopolitical turmoil as Egypt demonstrates increased tension between its military forces and the supporters of President Mohammed Morsi.

The July 4 is a public holiday in the United States, and that will possibly drain liquidity from the market, while the volatility is likely to remain high for the next 48 hours.

The U.S. Federal Reserve is taking actions to slow the pace of monetary stimulus by the end of this year.

The U.S. markets were closed on Thursday due to the Independence Day.

The unemployment report for the month of June may indicate the U.S. Federal Reserve policy shift.
Speculations are focused on investors’ concerns related to the issue of the U.S. Bureau of Labor Statistics report on Friday. It will contain non-agricultural sector data for the previous month, and many forecasters expect the news to be disappointing.