| Sep 2 2010, 22:10:58 GMT | Sydney: | 08:10 | Tokyo: | 07:10 | Barcelona: | 00:10 | London: | 23:10 | New York: | 18:10 | San Francisco: | 15:10 |
| Rate This Article: | ||
|
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.
Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of
leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider
your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some
or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of
all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
