Euro bounces off 11-year low as traders look to jobs report
MarketWatch - Mar 05, 2015
The euro rebounded from an 11-year low Thursday as investors looked ahead to Friday’s nonfarm payrolls report from the Bureau of Labor Statistics.
The shared currency hit an 11-year low earlier in the session after European Central Bank President Mario Draghi said the central bank wouldn’t buy bonds with yields lower than the central bank’s deposit rate of negative 0.2%.
Steve Englander, global head of G10 FX strategy at Citigroup, said that based on the recent stream of underwhelming economic data, Friday’s number will likely fall short of lofty estimates. If
If this happens, traders will likely focus on the reasons behind a decline — mainly whether or not bad weather or striking refinery workers could be to blame.
â€If we get 200,000 and a downward revision for the prior two months of 60,000, then investors might think ‘wait a second, maybe all this optimism on labor markets has been overdone,’†Englander said. “If it turns out that it’s largely weather related, I think investor will be calm about it and just look though it and say “well, we’ll make it up’.â€