By ForexMansion.com
Today, the pair’s movement may be affected by the release of SVME PMI for Switzerland due at 07:30 GMT, which is expected to show a decline in March to 62.5 from the 63.5 recorded in February, which if matched forecasts is going to push the pair to the upside, where the reading is predicted to show a drop as the franc’s appreciation seems to have negative impact on Swiss exports.
Nonetheless, the pair’s key direction for the day will probably be determined by the result of the awaited non-farm payrolls. Yesterday, data showed that USinitial jobless claims dropped to 388,000 the previous week, from the revised 394,000 a week earlier. Also, ADPemployment released this week showed that the private sector added 201,000 jobs in March, from the revised 208,000 in February, while non-farm employment due on Friday at 12:30 GMTwill add 195,000 jobs in March while unemployment will linger at 8.9%, according to median estimates.
Thus, in the case of improvement in non-farm payrolls, following the latest Fed announcements which raised the possibility of cutting the second-round stimulus, the pair is predicted to take an upside direction to pare some of the drop signaled in March.
Originally posted here
