It was a mixed day for the US dollar on Wednesday, which saw it continue to strengthen against the majority of its peers. The US currency gained just under a cent against sterling, and just over a cent against the euro, with the euro falling to lows not seen for eleven years. Investors look to flood back into the safe-haven US currency, with the non-farm employment change data from the country due on Friday. A leading indicator for the actual figure on Friday released yesterday, the ADP employment figures, showed a steady figure just below expectations.
Data Releases saw positive growth for both the services and non-manufacturing Purchasing Managers’ Indices (PMIs), also contributed to greenback strength. Federal Reserve Member Evans though dampened the hopes of those expecting an interest rate rise soon as he called for patience in normalising Interest Rates with current low inflation.
Fluctuations in US dollar markets are expected to continue in the lead up to the all-important employment figure on Friday, with the weekly unemployment claims and non-farm productivity (annual change in labour efficiency when producing goods and services) figures released today. Federal Reserve Member Williams will also speak.