On Thursday, the pair fell for the second as the rise in French 10-year bond yield at a bond auction enhanced demand on the dollar as a safe haven.
Francesold 7.96 billion euros of long-term debt, namely 2012, 2023, 2035 and 2041 bills. Yet, the main focus was on the yield on the benchmark 10-year bonds which saw a rise in the yield to 3.29% compared with 3.18% in the previous auction.
The rise in the yield added to concerns amid speculations rating agencies will cut the country’s top credit rating.
The fears from the euro area coming back to markets with the beginning of 2012, thus the dollar is expected to gain further strength versus the franc, especially amid speculations the SNB may intervene again to weaken the franc.
Moreover, data from theU.K.showed that services sector recorded a widening expansion in December as the PMI reading rose to 54.0 from the prior 52.1, exceeding forecasts of 51.5.
On the other hand, U.S. ADP employment change showed a rise to 325,000 compared with the revised 204,000, while initial jobless claims for the week ended Dec. 31 showed a decline to 372,000 from the revised 387,000 a week before.
On Friday, The week ends with the release of the awaited non-farm payrolls report from theUnited States, due at 13:30 GMT. Expectations refer that change in non farm payrolls will reach 150,000 in Dec. from the previous 120,000 while unemployment will rise to 8.7% from 8.6%.
The data is expected to affect the pair’s movement due to its high relevance, yet the pair will probably also be affected by the general sentiment which is focusing on the latest developments from the euro area.
Originally posted here
