The US dollar halted its rally on Wednesday, falling against some of its most-traded counterparts. The reason for the drop was the lackluster economic data that hurt optimism of dollar bulls. The greenback kept its losses on Thursday.
The week started on a positive note for the US currency as fundamental reports were mostly positive, resulting in a rally. Yet the recovery proved to be short-lived as economic data took a turn for the worse yet again. ADP employment data was among the disappointing indicators as it showed the growth by 189,000 instead of 227,000 predicted by analysts.
The news made Forex market participants much less optimistic about the upcoming non-farm payrolls. Thursday’s report about initial jobless claims is the final report before the release of the NFP, meaning it can also have a big impact on the FX market. Traders will be setting their positions using the unemployment data as an aid in guessing how good (or bad) the payrolls will be.
EUR/USD traded at 1.0757 as of 00:31 GMT today after rising from 1.0730 to 1.0762. USD/JPY dropped from 120.10 to 119.73 during the previous trading session and was at about 119.70 during the current session. USD/CHF fell from 0.9719 to 0.9667 on Wednesday and traded near that level on Thursday.
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