The US dollar again saw positive results yesterday, rising against a significant number of its most traded partners. The strength in the day came thanks to the independent non-farm employment change figure, which came out ahead of expectations. This showed that more workers had been added than expected, another positive in the key sector of the labour market. As a result, the dollar rose for a fourth consecutive day against the beleaguered euro, the longest run in two months.
All of this came ahead of the ever-important minutes from the US Federal Reserve, as their views on interest rates are sure to govern the dollar strength. Again there was some “sitting on the fence” in the minutes as the minutes stated that any increase in interest rates was unlikely to be before April as there were still worries about the knock on effect of problems from elsewhere in the world, such as the Eurozone, affecting the US economies growth.
Today stays with the labour market in terms of major data releases, with the unemployment claims figure due. This result – along with further reaction to last night – is likely to drive the dollar’s performance for the day.