Asian markets were mixed today after US markets closed largely unchanged yesterday. Markets had rallied on better than expected employment data out of the world's largest economy on Friday. Non-farm payroll figures showed the US had shed some 36k jobs, beating analyst forecasts for a drop of 68k. Although job loss continues to plague the workforce, a decrease in jobs lost suggests that unemployment may be bottoming, with the rate coming in unchanged at 9.7%. US markets had rallied sharply on the data Friday, boosting Asia Pacific markets yesterday, with the Nekkei 225 and the Hang Seng index both gaining nearly 2%. As markets digest the news, eyes once again return to the sovereign debt issues in the eurozone. Over the weekend, French President Nicolas Sarkozy had reaffirmed the EU's commitment to Greece and the euro currency as a whole, spurring an increase in risk appetite as investors look to higher yielding currencies. The euro's gains were subdued however, on remarks from Greek Prime Minister Papandreou who warned that the country's current borrowing costs are "unsustainable," and that further deterioration in Greece could lead to another global financial crisis.
Euro Trends Lower
Markets drifted today as uncertainty about conditions in the Eurozone once again weigh heavily on investors. The euro was softer pre market open in London having testing the 1.37 handle yesterday. Bearish sentiment persists as the single currency remains under heavy pressure. Sitting just below the 1.36 figure, support for the euro rests at 1.3570 followed by 1.3520 and the 1.35 handle. A break under the figure leaves additional demand at 1.3450 and lower at 1.3370. To the upside, resistance holds steady at 1.3650 backed by the 1.37 handle. Critical resistance rests with the upper band of the downward channel dating back to the Dec 3rd high at 1.3790. A break here leaves additional ceilings at 1.3830 followed by 1.3920 and 1.3980.
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