020 7898 0500The US dollar had a stronger showing yesterday compared to the day before, enjoying gains against the vast majority of its major partners. However, a strengthening sterling went against this trend, as the dollar fell to fresh multi-year lows against the UK currency. The dollar’s gains against the other currencies came thanks to positive data from the labour market, in the shape of the independent non-farm employment change figure. This number was higher than expected, showing that more workers than expected were added by companies in the last month. As this was a precursor to today’s official figure, investors gained some confidence in potential traction for an improving US economy.
Today is a particularly busy one, as data is packed in before the US celebrates Independence Day tomorrow. A quartet of figures are released simultaneously this afternoon, including the aforementioned official non-farm employment change. Alongside this, more labour data comes from the unemployment claims and the overall unemployment rate, alongside trade balance figures. There will also be a non-manufacturing Purchasing Managers’ Index from the Institute of Supply Management to give the US economy and currency one final push before markets close early for the weekend.
