Fri, 09 Mar 2012 00:00:00 +0100

US Employment Data May Lead to Dollar Gains

The US dollar took some losses against its riskier currency rivals yesterday, after positive euro-zone developments caused investors to move away from safe-haven assets. Against the euro, the USD tumbled well over 100 pips, while the AUD/USD jumped as high as 1.0667 during the European session. At the same time, the USD/JPY shot up as high as 81.71 after negative Japanese indicators resulted in increased pressure on the yen. Analysts are warning that it will be hard for the USD/JPY to break above the 82.00 level as long as US interest rates remain at their current level. Turning to today, the US Non-Farm Employment Change figure is guaranteed to be the highlight of the trading session. At the moment, analysts are forecasting that the US added around 208K jobs in February. If true, the number would represent a healthy boost in the US employment sector, and could result in increased risk taking in the marketplace. At the same time, the Non-Farms figure is notoriously hard to predict. If the figure comes in significantly below expectations, safe haven currencies like the yen could see gains to close out the week.

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