The Dollar gave up its gains against all 4 major currencies, Euro (EUR/USD), Cable (GBP/USD), Swiss Franc (USD/CHF), and Japanese Yen (USD/JPY), in US trading hours with profit taking ahead of today’s release of US employment data. A strong number should benefit the dollar particularly against the Euro and the Yen. Until the release of the economic data at 13.30 GMT, currency trading should be limited in both volume and range. Even on release of the figures, experienced traders will watch for the revisions to previous months US employment data. A non-farm payroll number bigger than 250k will be dollar positive while anything lower will cause a dip in the currency.
The Euro gained a slightly firmer sentiment on the back of Trichet’s comments indicating that the European Central Bank (ECB ) would be taking a firmer tone towards interest rates, opening the possibility of a hike at the next meeting.


Today’s important statistics - times GMT

13:30 US Jan Unemployment Rate expect 4.9% vs. 4.9%
13.30 US Jan Average earnings (month on month) expect 0.3% vs. 0.3%

13.30 US Jan Average earnings (year on year) expect 3.1% vs. 3.1%
13:30 US Jan Employment Payrolls expect 200K vs. 108K

15:00 US Jan Services ISM expect 59.0 vs. 61.0
15:00 US Dec Factory Orders expect 1.1% vs. 2.5%



We are only going to talk about the following four currencies against the US Dollar: Japanese Yen,British Pound,Swiss Franc and Euro.Look out for an article outlining our trading philosophy in the near future. Look out for our tecnical levels in the following:Euro (EUR/USD), Cable (GBP/USD), Swiss Franc (USD/CHF), and Japanese Yen (USD/JPY)