EUR jumps to 5-month peak, sees best quarterly performance in five years
TOKYO, Japan, Feb. 06, 2017 /Forbes/ Excon Fuji Securities saw the euro surge to its highest level against the greenback in five months on Thursday, extending a three-session winning streak.
Thus, the euro completed its best quarter against the dollar in five years.
Excon Fuji Securities highlighted that the EUR/USD traded in a broad range between 1.1310 and 1.1412 before settling at 1.1380, up 0.0078 or 0.41% on the session. The currency likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1496, the high from Oct. 15.
For the quarter, the euro jumped by more than 4.75% against the greenback, marking the strongest three-month period for the euro since the first quarter of 2011, when it jumped 5.8% against the dollar. It built momentum over the last week amid extremely dovish indications from Janet Yellen on a delayed interest rate hike by the Federal Reserve.
"On Friday, the second quarter will kick off with March's critical U.S. jobs report, which could provide key insight into the Federal Open Market Committee's (FOMC) decision-making process when it meets next in late-April," commented Daniel Sharp, Director of Corporate Equities at Excon Fuji Securities
Yellen noted earlier this week that the U.S. economy has displayed remarkable resiliency as the labor market continues to exhibit dramatic improvements. Analysts expect monthly nonfarm payrolls to increase by 210,000 for the month, while the unemployment rate remains steady at 4.9%.
Excon Fuji Securities predict the dollar will likely be powered by any rate hikes by the Fed this year, as foreign investors pile into the greenback in order to capitalize on higher yields.
