4 Apr 2014
USD stronger ahead of Payrolls - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlines the bullish tone of the USD ahead of today's NFP.
Key Quotes
"The US dollar has continued to strengthen modestly against the other major currencies ahead of the release of the latest US employment report for March, with the US dollar index rising above its 55-day moving average for the first time since the 13th February. The US dollar is rebounding in the near-term alongside the rebounding US economy."
"The release yesterday of the ISM non-manufacturing survey provided a further signal that activity is rebounding in the US. The survey revealed that business confidence improved by 2.1 point to 53.4 in March."
"The employment sub-component also rebounded by a record 6.1 point to 53.6 further reinforcing investor expectations that today’s non-farm payrolls report will reveal that US labour market conditions continued to strengthen in March. The ISM noted that the bad weather had been a strong factor in prior months which had weighed upon business confidence and economic activity."
"The US dollar is also being supported by the gradual slowdown of the Fed’s QE program which remains on course to end later this year. The ECB’s signal yesterday that they are moving closer to implementing QE while the Fed is moving closer to ending QE has contributed to making the US dollar appear relatively more attractive. Dallas Fed President Fisher confirmed overnight that QE is likely to end in October under the current pace of tapering."
Key Quotes
"The US dollar has continued to strengthen modestly against the other major currencies ahead of the release of the latest US employment report for March, with the US dollar index rising above its 55-day moving average for the first time since the 13th February. The US dollar is rebounding in the near-term alongside the rebounding US economy."
"The release yesterday of the ISM non-manufacturing survey provided a further signal that activity is rebounding in the US. The survey revealed that business confidence improved by 2.1 point to 53.4 in March."
"The employment sub-component also rebounded by a record 6.1 point to 53.6 further reinforcing investor expectations that today’s non-farm payrolls report will reveal that US labour market conditions continued to strengthen in March. The ISM noted that the bad weather had been a strong factor in prior months which had weighed upon business confidence and economic activity."
"The US dollar is also being supported by the gradual slowdown of the Fed’s QE program which remains on course to end later this year. The ECB’s signal yesterday that they are moving closer to implementing QE while the Fed is moving closer to ending QE has contributed to making the US dollar appear relatively more attractive. Dallas Fed President Fisher confirmed overnight that QE is likely to end in October under the current pace of tapering."