The U.S. Dollar fell against its main rivals during London trade on Thursday, generally on improved risk appetite and growing hope that a vaccine breakthrough to halt the spread of the Coronavirus has been found. While the US Dollar Index is poised to record its largest weekly decline in a month, analysts point out that the direction will be dependent on on the release of upcoming U.S. jobs data. The US non-farms payroll numbers, which are due out a day earlier than normal given the US Independence Day holiday, are projected to show that new private sector jobs increased 3 million in June.
As of 10:58 am in London, the EUR/USD was trading at $1.1286, up 0.3218% and off the session peak of $1.13033. The GBP/USD was higher at $1.2515, a gain of 0.2957%; the pair has ranged from a low of $1.24603 to a high of $1.25280 in today's session. The USD/JPY was lower at 107.4410 Yen, down 0.0074% and off the session trough of 107.329 Yen. The US Dollar Index was trading at 96.92 .DXY, down 0.28%.
Labor Data Could Show Steady Improvement
While analysts have forecasted an improvement to the NFP figures for June, another key metric that will be watched is the average hourly earnings. Economists recently polled have predicted that that figure will decline to 5.3% from 6.7%. The Unemployment Rate is also projected to have improved to 12.3% from the previous 13.3%. Initial jobless claims for the week ended June 26th could show a slower pace, to 1.355 million from 1.480 million the week before, while continuing claims are forecasted to show a decline to 19 million from 19.52 million.