The dollar gained versus most of its major peers this week ahead of a U.S. report today that may show companies added enough jobs to lower the unemployment rate, boosting growth prospects for the world’s biggest economy.
The greenback traded near its strongest in more than a month against the yen, euro and pound while the Dollar Index touched a five-week high amid speculation improvement in the U.S. economy will prompt the Federal Reserve to curb stimulus. The euro and pound slid after European Central Bank President Mario Draghi and Bank of England Governor Mark Carney signaled they will keep borrowing costs at record lows.
“The dovish comments from the ECB and BOE, together with a stronger payrolls report emphasize that the Fed will be the first of the major central banks to exit unconventional policy,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. (CBA) “That’s just going to support a further rise in the U.S. dollar.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.