Forex - EUR/USD higher pre non farm payroll data

Forexpros -  The euro gained against the U.S. dollar in early trade Friday, as investors await the official non farm payroll numbers to gauge the recovery strength in the world’s largest economy.
 
EUR/USD traded at a low of 1.3115 and hit a high of 1.3186 prior to trading higher by 0.12% at 1.3159.
 
The pair was likely to find support at 1.3025, Wednesday’s low  and technical resistance exists at 1.3232 last Friday’s and six week high.
 
The heavily anticipated non farm payroll report hits the wire before the U.S. stock market opens today.  It is forecasted that employment increased by 140,000 after climbing 200,000 last month.
 
Traders watch this report very closely to gauge the strength of the recovery in the world’s largest economy.
 
In the U.S., data indicated that the number of filings for unemployment assistance last week dropped more than expected to 367,000 beating estimates for a decline of 373,000.
 
Economists believe jobless claims below 400,000 indicate an improving labor market. The number has remained below 400,000 in 12 of the last 14 weeks, helping fuel the bullish stock advance in 2012.
 
Meanwhile, Federal Reserve Chairman, Ben Bernanke stated at his testimony today that the economy is showing signs of improvement. In addition to requesting lawmakers to reduce the long term U.S. budget deficit.
 
In other news, finance ministers from Germany, Finland, Luxembourg and the Netherlands, the four euro zone countries with AAA ratings from all three major rating agencies, will meet in Berlin today.  There will be a news blackout on the meeting with no press conference or briefs.
 
Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20.  The investment bank expects government budget controls to result in a region wide recession.
 
The euro slipped lower against the pound with EUR/GBP down 0.04% to 0.8312.