The US dollar had a positive day yesterday, thanks largely to better than expected labour data from the country. Although early euro strength had seen the dollar reach its lowest point since late 2011 against the multi-nation currency, it made good gains later on following the release of non-farm payrolls data, despite the fact that the overall unemployment rate rose to 6.7% from 6.6% the month before. With the payroll figure surpassing expectations, this added weight to the likely continued increase in the tapering of the quantitative easing program which is viewed a USD positive. These gains involved hitting a six-week high against the Japanese yen.
This week is quiet on the data front for the first few days, with only the budget balance and words from members of the Federal Open Market Committee as factors that could cause the dollar to strengthen or weaken. We see more influential figures on Thursday, when both retail data and unemployment claims are due. Friday also promises some relatively important data, with the Producers’ Price Index and the preliminary Consumer Sentiment figures released by the University of Michigan.
With Janet Yellen installed as the new Chair of the US Federal Reserve, positive data would add to optimism over continued tapering.
Thinking of buying or selling US dollars? Call your trader now for the latest rates, as the dollar looks to gain some confidence.