Daily Forex News & Analysis – 04/02/13



The dollar traded mixed on Friday, rising after the release of positive sentiment and manufacturing data, but falling to the euro which continued to see strong interest. The greenback ended the day at 1.3639 to the euro and 92.81 to the yen. Today’s news includes December Factory Orders which are expected to rise by 2.2% from 0.0% previously.


The single currency rose on Friday as the trend for euro-buying continued. Data was on the whole stronger-than-expected with Euro-zone PMI Manufacturing rising to 47.9 from the 47.5 expected. The euro ended the day at 1.3639 to the dollar and 126.61 to the yen. Today’s data includes the Euro-zone Producer Price Index which is expected to remain unchanged at 2.1% y/y in December.


The pound fell on Friday after data showed a drop in Manufacturing PMI in January to 50.4 from 50.6 previously when an increase had been expected. Sterling ended the day at 1.5692 to the dollar and 145.66 to the yen. Data out today includes Construction PMI in January, which is expected to rise to 49.2.


The yen traded overall weaker on Friday. Data overnight showed an unexpected fall in Household Spending to -0.7% from 0.2%, when a -0.2% fall had been forecast. The yen ended the day at 92.81 to the dollar and 126.61 to the euro.


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I am a forex analyst, trader and writer. I have had a career writing articles for websites and journals, starting in the travel sector and then in Forex. I use a combination of technical and fundamental analysis in my forecasting. When I joined Forex4you in 2010 I thought it was a great opportunity to work as an analyst for an international broker. I provide technical forecasts with clear entry points and targets as well as articles on fundamental and trading themes. Good luck and happy trading!