By: Barbara Zigah
Before the expected release later today of non-farms payroll data from the United States Labor Department, the U.S. currency traded flat versus a group of six major currencies. As reported at 7:35 a.m. (GMT) in London, the U.S. Dollar Index, which gauges the greenback’s value against a basket of currencies, held steady at 77.25 .DXY.
The September payroll numbers, which comprise both private and public sectors and which are thought to have the single largest impact of all indicators on the financial markets, will be released at 12:30 p.m. (GMT). According to one forex strategist, traders will be trimming their positions until that time, and ensuring that aggressive positioning remains in check.
A recent poll among economists revealed that the report will show that nearly 180,000 jobs were shed in September, a marked decrease from the 216,000 lost jobs the previous month. While the slowing rate of deterioration in the U.S. labor markets is good for the U.S. economy, analysts believe that the U.S. unemployment rate will show an increase to 9.8% from the previous month, and hitting the highest level in more than a quarter of a century.
U.S. Dollar Holds Steady in Advance of U.S. Labor Data Release
Barbara Zigah