EUR reclaims $1.12, but recovery looks weak...>

FOREX: EUR reclaims $1.12, but recovery looks weak ahead of payrolls

-Having bottomed out post-ECB at $1.1177 late yesterday, EUR/USD has edged back

above the $1.12 handle as markets look to retrace a small portion of yesterday's

sharp losses. While EUR/USD is back above the handle, price action remains weak,

with most players likely sitting on the sidelines ahead of the February payrolls

release, which becomes the next potential catalyst.

-China's trade balance data was woeful: exporting and imports contracted by

16.6% and 0.3% respectively against expectations of a rise in both measures,

helping knock risk sentiment overnight. Nonetheless, AUD and NZD have staged

minor recoveries midway through the morning and sit toward the top of the G10

table Friday.

-The appetite for haven FX remains clear, with JPY rising against most others.

USD/JPY briefly broke below the Y111 handle for the first time since Feb28

having succeeded in breaking below the 200- and 100-dmas at Y111.40 and Y111.36

respectively. Canadian and US jobs data takes focus from here, with change in

payrolls expected at +180k (whisper: +172K).