Euro edges lower ahead of US jobs data

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GMT - 3 Hours Euro edges lower ahead of US jobs data

Post by ĽĭÓń ĤéĂѓŦ on Fri Oct 07, 2011 5:31 pm

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TOKYO: The euro edged lower against major currencies in Asia on Friday as markets waited for key US jobs data, after the unit gained on the European Central Bank's measures to shore up financial institutions.

The euro traded at $1.3410 in Tokyo trade against $1.3433 in New York late Thursday. The European common currency was at 102.82 yen compared to 103.03 yen.

The dollar was unchanged at 76.69 yen.

Markets were cautious ahead of Friday's US nonfarm payrolls data, as investors look for an indication of the health of the world's biggest economy, said Gen Kawabe, senior dealer at Chuo Mitsui Trust and Banking.

BNZ FX Strategist Mike Burrowes told Dow Jones Newswires: "We are now shifting our attention to the US economy, which we have kind of forgotten about."

Global stock markets and risk-sensitive currencies got a boost overnight after the ECB announced measures to bolster eurozone banks that are under pressure from the public debt crises in Greece, Ireland and Portugal.

The ECB opened two longer-term new lines of credit for banks and pledged to buy up to 40 billion euros of bank bonds backed by collateral, starting in November, as it looked to soothe jittery financial markets.

Traders regained their risk appetite as the decision helped ease worries that the eurozone sovereign debt crisis would cripple the financial system and the broader global economy.

Britain's central bank, the Bank of England, announced it would inject 75 billion pounds into the stalled economy to stimulate growth.

Also positive for the euro were remarks by European Commission head Jose Manuel Barroso that efforts are under way for coordinated action by the 27 European Union states to recapitalise banks.

"We are now proposing to the member states to have a coordinated action to recapitalise banks and get rid of toxic assets they may have," Barroso said in an interview with Euronews TV.

The Bank of Japan is due to wrap up its policy meeting Friday.

The central bank is expected to keep its monetary policy on hold despite persistent worries about a high yen and concerns about overseas economies, according to a survey of 10 prominent BOJ watchers polled by Dow Jones. (AFP)
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