The pair slipped, paring earlier advance, as split among Greek policymakers regarding a referendum on receiving an EU/IMF bailout and expectations of government collapse eased default concerns, thereby damping demand on the dollar as a favorite safe haven.
With the current split that will be mainly changed from accepting the bailout to staying in the euro area or not, hopes increased that the Greek government might fall in tomorrow’s Parliament vote which mean that the referendum will probably be postponed.
This managed to offset the impact of the ECB decision to cut interest rate by 25 basis points which boosted the dollar before it retreated. Some investors interpreted the cut positively as it will bolster the economy amid the current anemic recovery.
Moreover, ISM non-manufacturing composite for theU.S.slipped to 52.9 in Oct. from 53.0 in Sep., yet factory orders showed 0.3% advance in Sep. from the revised 0.1%.
On Friday, the Swiss economy will release foreign currency reserves at 08:00 GMT, and then the main focus of the week which is the awaited non-farm payrolls report from theUnited Stateswill be due at 12:30 GMT. Expectations refer that change in non farm payrolls will retreat to 100,000 in October, lower than the previous 103,000 while unemployment will stagnate at 9.1%.
The awaited non-farm report will provide evidence about the labor market and therefore is predicted to affect the pair’s movements.
On Tuesday, the Fed lowered growth forecasts and raised estimates for unemployment, whilst revealing that purchasing mortgage-backed securities is a valid option for the Fed to boost the slackening recovery.
