Positive expectations for Friday’s nonfarm payroll report sent the Dollar higher against the Yen, as investors continued the week’s pullback from safe-haven currencies. Today’s nonfarm payroll report is especially questionable, not only because it directly precedes this coming Tuesday’s US presidential election, but because it follows Hurricane Sandy whose immediate financial effects are being felt worldwide, but whose effect on the job market will not be recorded until November’s report. For this reason, investors are wary of the data that is set to be released as it may not accurately reflect the country’s true state of affairs.According to Reuters, analysts are expecting to see US unemployment continue to hover around 7.8 percent, with an unimpressive 125,000 new nonfarm positions created in October.
In Asian trading the Dollar rose slightly against the Yen, hitting 80.29. The Yen also eased against other major currencies including the Australian Dollar and the Euro. The Euro eased slightly against the Dollar to $1.2933 as investors continue to express concerns about Spain and Greece. In addition to the nonfarm payroll report coming today, Eurozone countries will be releasing their manufacturing data which is likely to show continued contraction of the region’s economy on the whole.