While economic data is an inevitably important factor in the performance of the dollar, this week saw the situation in Ukraine exert its influence over worldwide markets. This was of particular significance to the US dollar, given its status as a safe haven currency. The uncertainty over events unfolding in Ukraine gave strength to the dollar in the first part of the week, with investors focusing on ‘safer’ currencies.
Alongside this, manufacturing figures at the start of the week showed good health in the sector, aiding the currency’s fortunes. Mid-week data was more disappointing, as the independent precursor to today’s non-farm payroll figure missed its expectations. The non-manufacturing Purchasing Managers’ Index also missed expectations. Yesterday gave the US currency a little more hope, as unemployment claims from the country were better than expected, an encouraging sign as the labour market is one of a selection of key indicators of economic health.
Today could prove the most important day for the dollar, as the ever-important official non-farm employment change figure is due. Alongside this will be the unemployment rate, with more data expected in terms of the US trade balance.
Looking to buy or sell US dollars? Get in touch with your trader now, as the week may end on a significant note.