Home > Resource Hub > Daily Market News > US Jobs market results hold key to Dollar dominance (for now)

US Jobs market results hold key to Dollar dominance (for now)

US Jobs market results hold key to Dollar dominance (for now)

Sterling had a listless performance yesterday after Bank of England Governor Andrew noted that the UK economy is likely to revert to lower growth longer-term, but reiterated that the rise in inflation will probably be transitory (so no hint of raising interest rates). Brussels agreed a temporary truce on the so-called ‘sausage wars’: a three-month extension to a grace period on chilled meat exports from Britain into the region. 

A weaker Sterling was reflected in EUR/GBP edging back above the 86p threshold. Meanwhile, GBP/USD is changing hands back near to the midpoint of $1.37-1.38. And  EUR/USD continues to trade in the bottom half of $1.18-1.19. 

Today, all eyes will be on the latest US NonFarm payrolls number around midday. The previous two months results have been lower than expected, raising concerns that the jobs market recovery may be slowing. Today’s market forecast is for a strong 700k number for June, and falling significantly short of that would reverse the recent Dollar gains. The jobless rate is set to edge lower to 5.7% from 5.8% also.

 

Friday: Japan monetary base; Eurozone PPI; Canada building permits, trade balance; US non-farm payroll employment, trade balance, factory orders; Canada PMI manufacturing.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.