Dollar Spikes Up Ahead Of U.S. Jobs Data
July 02 2015 - 5:27AM
RTTF2
The U.S. dollar strengthened against its major rivals in early
European deals on Thursday, as traders await U.S. jobs data due
later in the day to gauge whether the Federal Reserve will raise
interest rates as early as September.
Data from the Labour Department may show the economy to have
added 230,000 jobs in June, following a gain of 280,000 jobs in
May. The jobless rate is seen dipping to a seven-year low of 5.4
percent.
The report is being released one day ahead, due to the
Independence Day holiday on Friday.
The data could provide more clarity about the timing of Federal
Reserve rate hike, as its policy makers had reiterated that the
timing of first interest rate hike would be determined by economic
data.
A slew of strong economic data released on Wednesday indicated
that the economic recovery is gathering pace, after a first-quarter
slump. The currency has been trading higher after these data.
In European trading, the greenback climbed to a 6-day high of
123.59 against the yen, up from Wednesday's closing value of
123.16. The greenback is seen finding resistance around the 125.00
zone.
Data from the Bank of Japan showed that Japan's monetary base
surged 34.2 percent on year in June, coming in at 325.047 trillion
yen.
That follows the 35.6 percent spike in May.
The greenback advanced to 1.5580 against the pound, its
strongest since June 16. The next possible resistance for the
greenback may be located around the 1.55 level. The pair was worth
1.5610 at yesterday's close.
Data from the Nationwide Building Society showed that U.K. house
prices declined unexpectedly in June.
House prices dropped 0.2 percent month-on-month in June,
confounding expectations for a 0.5 percent rise. This was the first
fall in four months and reversed a 0.2 percent rise in May.
The greenback resumed its early advance against the Swiss franc,
approaching nearly a 4-week high of 0.9492. Continuation of the
greenback's uptrend may lead it to a resistance surrounding the
0.96 area. At Wednesday's close, the pair was quoted at 0.9478.
The greenback firmed to a 2-1/2-month high of 1.2625 against the
loonie, 3-day high high of 0.7598 against the aussie and a 5-year
high of 0.6669 against the kiwi, compared to yesterday's closing
values of 1.2586, 0.7644 and 0.6731,respectively. If the greenback
continues rally, it may challenge resistance around 1.28 against
the loonie, 0.75 against the aussie and 0.65 against the kiwi.
On the flip side, the greenback eased back from an early 3-day
high of 1.1031 against the euro with the pair trading at 1.1074.
The pair was valued at 1.1051 when it ended yesterday's
trading.
Looking ahead, U.S. weekly jobless claim for the week ended June
27, U.S. jobs data for June and factory orders for May are set to
be announced in the New York session.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Sep 2023 to Sep 2024