The U.S. Dollar is trading lower ahead of this morning’s U.S. jobs datareport. Today’s Non-Farm Payrolls Report is expected to loss in Octoberof about 175,000 jobs.
The U.S. Dollar is trading lower ahead of this morning’s U.S. jobs data report. Today’s Non-Farm Payrolls Report is expected to loss in October of about 175,000 jobs. The key will be how investors react if the unemployment rate reaches or exceeds 10%. Some say this figure is built into the market.
Yesterday the Bank of England announced that interest rates would remain at the historically low 0.50% level. The BoE did increase its quantitative easing program by $41 billion. This figure came within the range of expectations and triggered a rally in the GBP USD. The main trend is up and the market is within striking distance of the October high at 1.6691.
The European Central Bank left interest rates unchanged at 1% while ECB President Trichet hinted at the central bank’s exit strategy. Traders do not expect a rate hike soon but are expecting the ECB to begin withdrawing stimulus over the coming months. Improving economic conditions in the Euro Zone are showing that stimulus measures are no longer warranted.
This morning the Euro, British Pound, Japanese Yen and Swiss Franc are all trading flat ahead of the U.S. jobs data. The USD CAD is trading higher. News that the Reserve Bank of Australia upped its GDP forecast and hinted at future interest rate hikes is helping to boost the AUD USD and NZD USD.