- US dollar rises modestly across the board, DXY erased yesterday’s losses.
- Key event ahead: NFP report and potential headlines on US-China trade talks.
The US dollar rose across the board on Thursday, ahead of the release of the US employment report and as market participants await critical news regarding the China-US trade talks.
The greenback holds strong in the market supported by the rebound in US yields and the latest round of US data. Today it was reported that jobless claims dropped to 202K, the lowest level since 1969. On Friday, the NFP report is due. “We expect a recovery in employment in the construction sector following a sharp decline in February that likely reflected some impact from adverse weather. In addition, both manufacturing and services jobs should also register more trend-like gains. The regional manufacturing surveys suggest improvement, while services employment should be led by job gains in the education and leisure sectors. We note, however, that the soft March ADP employment report increases risks for a downside surprise to our already below- consensus projection“, wrote TDS analysts. Market consensus points to a gain of 180.000 in pay-rolls.
The DXY held above the 97.00 area at all times today and moved to the upside. It peaked at the beginning of the American session at 97.34, a 2-day high. During the last hours, it has been trading around 97.30, up 0.24% for the day. The index erased yesterday’s losses and is testing a key resistance area but not significant moves are expected over the next hours. Attention turns to tomorrow’s NFP report that could trigger some volatility in the market.
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