Dollar seeking direction as traders await non-farm payrolls, Michigan data
February 3rd - After Tuesday’s less than clear cut FOMC verdict, the dollar remains in a state of flux although some key economic readings due out of the US later in today’s session may well serve to provide additional direction for traders in the near term. There’s mounting belief that future rate hikes from the fed will be seen and these will be in direct response to data that is showing inflationary pressures - with both Michigan consumer confidence and non-farm payrolls due ahead of the weekend break, either of these numbers could provide some indication as to when the next move will be seen. Data released yesterday showed that labor costs are on the increase and the weekly jobless claims figure also came in better than expected – obviously any decision by the US to deploy troops to Iran could initiate something of a sell-off of the greenback, but such a move would seem to be some way off and as a result in the shorter term, the prospect of further improving yields looks set to continue favouring the dollar.
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