US Dollar Index Recording Gains for the Week

The US Dollar edged higher during Asian trade today; the US Dollar Index is poised to record a gain for the week against a weighted basket of its peers. The Dollar’s rise over the recent term is largely as a result of newfound optimism that Donald Trump’s plan to reform the US tax code is likely to be made into law. One issue, which had been weighing on the greenback, was dealt with on Thursday. Specifically, legislators pushed through a short-term extension of the federal budget through to December 22, 2017. President Trump is expected to sign the bill later today.

As reported at 10:48 am (JST) in Tokyo, the USD/JPY was trading at 113.31 Yen, a gain of 0.22%; the pair has ranged from a session low of 113.290 Yen to a peak of 113.332 Yen. The AUD/USD was trading lower at $0.7501, down 0.03% while the NZD/USD was up 0.10% at $0.6835.

Looming NFP to Dictate Dollar Direction

In the US, analysts are still expecting to see a slight decline in private sector jobs growth (month-over-month) for the month of December and are forecasting 200K new jobs. One economist noted that this NFP report is significant because it should not be impacted by the hurricanes which had struck earlier this year and thus is deemed a “clean read” of the real economy. Yesterday, the US Department of Labor reported that 2K fewer Americans filed an initial claim for unemployment benefits in the week ending December 2nd. Analysts had earlier predicted that claims would rise by 2,000. A negative miss on the actual NFP figures would likely weigh on the greenback while an upbeat read would provide support, especially given the Fed’s dual mandate of full employment when considering monetary policy.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.