The Greenback touches new highs, confirmed by strong employment numbers

OFX Daily Market News

Posted by OFX

USD – United States Dollar

The Greenback has been strong in overnight trading; however, in a “buy the rumor sell the fact” style, it has slightly fallen over the last few minutes after the U.S. Jobless Claims decreased to a lower level over the last five weeks. Filings for U.S. unemployment claims came in at 214k versus the 221k expected. This situation confirms the strength in the labour market, where American companies may be less likely to let employees go amid an elevated level of job openings and difficulty hiring talented and experienced staff.

In the last few minutes, the U.S. dollar has erased some of its gains after Fed Vice Chairman Richard Clarida said that looking ahead, the monetary policy situation is not at a “preset course.” He added that the Fed would decrease the number of repo operations it has conducted as the Fed’s $60 billion of monthly Treasury bill purchases help to increase the level of reserves in the financial system, adding that he does not see the need for some repo operations to continue at least through April. However, he said that the economy was in the right place.

Key Movers

Early this morning on the other side of the pond, in the UK, the outgoing BoE Governor Mark Carney inferred that there might be an impact on rates. The GBP/USD pair falls 0.37 percent towards 1.3040.

Expected Ranges

USD/CAD: 1.3039 – 1.3094 ▲

EUR/USD: 1.1075 – 1.1137 ▼

GBP/USD: 1.2995 – 1.3095 ▼

AUD/USD: 0.6849 – 0.6892 ▼

NZD/USD: 0.6589 – 0.6628 ▼


Posted by OFX

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