The US dollar traded higher against almost all of the other G10 currencies yesterday, as some participants may have decided to cover some of their prior short positions ahead of the US employment report, scheduled for today. Expectations are for a decent report, but we doubt that it could affect expectations with regards to the Fed’s future policy plans. The euro was the main loser, feeling the heat of another quarter of economic contraction in Italy, as well as concerns over Germany’s growth by ECB’s Weidmann.
USD Gains Ahead of US Jobs Report, US-China Talks End on Positive Note
The dollar traded higher against all but one of the other G10 currencies on Thursday, as USD-traders may have decided to cover some of their short positions initiated after the more dovish than expected shift by the Fed. The greenback gained the most against EUR, NOK, SEK and AUD, while it traded virtually unchanged against NZD.
As for today, USD-traders may lock their gaze on the US employment data for January. Expectations have changed and now suggest that non-farm payrolls have increased 165k, much less than...
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