The dollar was slightly firmer as investors are cautious ahead of today's US jobs report. Asian and European markets were broadly stronger early in London trade after yesterdays positive US close, with the Nikkei 225 gaining more than 2% on speculation that the Bank of Japan is considering implementing further easing measures. This comes as Chinese Premier Wen Jiabao stated today that China will "continue to implement a proactive fiscal policy and moderately easy monetary policy." These reaffirmations prompted short-term traders to move into higher yielding currencies, putting pressure on the yen which fell to 89.40 vs. the greenback, pre-market open in London. Resistance rests with the monthly pivot, at 89.90 with additional ceilings at the 61.8% Fibonacci extension taken from the Feb 4th and March 4th troughs, at 90.30. Here the extension converges with the upper bound of the wedge formation dating back to the Jan 8th high, which if overcome, leaves significant room for advances for the greenback. Demand sits at 88.50 with additional support at 88.10 backed by 87.90.
Greece Braces for Demonstrations
Greek Prime Minister George Papandreou meets with Chancellor Merkel in Germany today as tension between the two countries has risen in recent days. No announcements are expected with regards to any type of bailout for the debt laden country. With a better than expected bond auction yesterday, investors softened their heavy bearish views, improving sentiment among the Eurozone countries. Domestically however, Greece faces increasing civil unrest, with unions planning additional strikes to protest the latest round of austerity measures. These protests are expected to shut down schools, airports, and cause other major disruptions.
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