The US dollar lost ground against a handful of major currency pairs yesterday, thanks to the release of mixed US economic reports.
Today the major data release is unemployment claims, expected at 1:30 pm, which has the potential to dramatically affect the value of the US dollar. The previous result came in at 282,000, and tomorrow’s figure is expected to be 2,000 lower, at 280,000. This would naturally be a good sign for the US economy, and ultimately should have a positive effect on the value of the dollar moving forward. Then tomorrow we have the key non-farm payrolls data release for May which is expected to hold steady at 223,000 plus no movement in the unemployment rate of 5.4%.
So plenty of opportunity for rapid movement in the US dollar and the direction of that movement very much dependent on whether the data surprises to the upside or downside as this data will have a major impact on when forecasters will be predicting the first increase in US interest rates to happen.