Press "Enter" to skip to content

Dollar progresses pending US employment

The dollar rose against major currencies on Friday after a disappointing German indicator and in a market focused on the upcoming publication of the monthly report on US employment.

Around 08:35 GMT (10.35 in Paris), the euro fell by 0.18% against the greenback, to 1.1264 dollars.

In early European trade, analysts digested the German industrial order figures in May, which fell 2.2% while analysts expected a near-stabilization, pending the monthly report on US employment expected in 12:30 GMT.

This stronger than expected decline “reinforces the concerns that weigh on the German manufacturing sector”, which has repercussions on the euro, commented analysts of the broker Sucden.

But the highlight of the day will be the release of US data on employment in the United States in June, reported several analysts.

“The Fed is paying close attention to the economic data, and since day one, its mantra has been to rely on it,” said analyst analyst Naeem Aslam, explaining why this job report is “really important”.

At its last meeting, the US Federal Reserve made it clear that it was considering lowering interest rates at the end of the month to stimulate the economy. This would also have the effect of making the dollar less profitable and therefore less attractive for traders.

Almost all analysts expect such action but doubts remain about its magnitude (25 or 50 basis points).

If the numbers are good, “it will be more difficult for the Central Bank to justify a rate cut,” said Michael Hewson, analyst for CMC Markets.

Nevertheless, the trend was rather to anticipate a bad surprise while the ADP survey, considered less reliable than the official data, has already given on Wednesday a preview by announcing job creations weaker than expected for June.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *