Today, investors are sitting on the edge of their seats in anticipation of the US employment report. Expectations are for a report consistent with further tightening in the labor market. Yesterday, Eurozone’s preliminary data showed that both the headline and core CPIs slowed in April, leaving investors questioning the ECB’s confidence over inflation.
USD-Traders Turn Attention to the US Employment Report
The US dollar traded lower or unchanged against all but one of its G10 counterparts on Thursday. The greenback underperformed against SEK, NOK, JPY, AUD and NZD in that order, while it traded virtually unchanged against EUR, CAD and CHF. It gained slightly only against GBP, which came under selling interest after the UK services PMI rose by less than anticipated. NOK was among the winners as the Norges Bank maintained the view that interest rates are likely to be raised after summer 2018. AUD also gained after the RBA revised upwards its core inflation forecasts in its quarterly Statement of Monetary Policy.
Following the FOMC decision on Wednesday, today USD-traders shift their attention to the US employment data. Expectations have changed and now suggest that non-farm payrolls have risen 189k in April, more than the weak reading of 103k in March. The unemployment rate is...
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