Forex Pros – The U.S. dollar dipped to a daily low against the yen on Thursday, despite an improvement in market sentiment as oil prices eased following reports of a possible deal to end violence in Libya.
USD/JPY hit 81.74 during European morning trade, the daily low; the pair subsequently consolidated at 81.80, slipping 0.06%.
The pair was likely to find support at 81.56, Wednesday’s low and one-month low and resistance at 82.10, Wednesday’s high.
Earlier in the day, news network Al Jazeera said Libyan leader Muammar Gaddafi and the president of the Arab League had agreed to a peace plan from Venezuela’s president, Hugo Chavez, to end the crisis in Libya.
Meanwhile, the Federal Reserve’s Beige Book on Wednesday indicated that the labor market improved throughout the U.S. early this year, driven by increasing retail sales and “solid growth” in manufacturing.
Meanwhile, a report by payroll processing firm ADP said U.S. private sector employment rose by 217,000 in February, better than the expected 170,000 gain.
The yen was also slightly higher against the euro, with EUR/JPY dipping 0.03% to hit 113.45.
Later in the day, the U.S. was to release key weekly data on initial jobless claims, as well as a report on service sector activity.
ForexPros.com
