Currency Note US Dollar

US Dollar awaits today’s key employment data

By Smart Currency June 6th, 2014

The US dollar began the week with mild success, enjoying slight gains thanks to increasing optimism over the future prospects of the currency. A muted day followed, before Wednesday saw gains made against sterling, the euro, and the yen, thanks largely to positive non-manufacturing data. This showed an increase for the third consecutive month, which helped to buoy the currency after the independent non-farm employment change release missed its expected level. Yesterday saw attention focussed on the Eurozone, but the dollar held its own as its unemployment claims figure came out in line with its predictions. This, coupled with a weakening euro, saw the dollar rise to the highest since February against the multi-nation currency, although the euro had recovered by the end of the day.

Today sees the most influential release for the US dollar, with the official non-farm payrolls figure due. As ever, this provides a strong opportunity for shifts in the markets, given its unpredictability. This, along with the accompanying unemployment rate, means that there is ample risk for significant moves, due to the important nature of the labour market as an economic indicator.