The dollar is gaining ground ahead of the NFP report
The US dollar is gaining ground on other major currencies during early Friday trading. The greenback is in demand after employment data published on Thursday showed that unemployment claims remain low, with expectations for today’s non-farm payrolls also looking positive. Against the background of a healthy labour market and lingering inflation, the case for an increasingly hawkish Fed builds up, with several more interest rate hikes expected in the run-up to the end of the year, with the next one likely to be of 50 basis points. In such a scenario, there is scope for further dollar gains, especially versus the Japanese yen, as the bank of Japan shows no interest in shifting its dovish stance, and versus the euro, as the European Union’s energy crisis and dependency on Russian supplies remains a cause for concern.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.