US Dollar Up Ahead of Friday’s US Payrolls Report

FxPremiere.com The dollar was slightly up on Thursday morning in Asia but trading close to a two-month high against both the euro and yen. Pessimism over the U.S economic recovery from COVID-19 receded ahead of the release of the U.S. payrolls report.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.01% to 91.112 by 8:52 PM ET (1:52 AM GMT), near its highest level since early December 2020. Leading Economic Indicators

The AUD/USD pair was up 0.27% to 0.7638, with the riskier AUD boosted by hopes for continued U.S. stimulus. The Reserve Bank of Australia will release updated economic forecasts on Friday, which could determine the AUD’s direction. Across the Tasman Sea, the NZD/USD pair inched up 0.08% to 0.7212. Pound Jumps as UK-EU Brexit

The USD/CNY pair was flat at 6.4579. Pound US Dollar GBPUSD Exchange Rate Falls

TRAPS BEGINNERS IN TRADING DONT SEE

Investors’ sentiment for the dollar recently improved as COVID-19 vaccination programs continue globally, the $1.9 trillion stimulus package proposed by U.S..

On the data front, the U.S. payrolls report for January, including non-farm payrolls, will be released on Friday. The release will be a test for the dollar’s recent rise, as the data will indicate how the U.S. economy reacted to the dip in growth seen near the end of 2020. Dollar Up Holds Onto Biggest Gains

Forecasts prepared by Investing.com predict that 50,000 non-farm payrolls were added to the U.S. economy, against the 140,000-jobs contraction reported in December as a second wave of COVID-19 cases and the ensuing restrictive measures decreased economic activity.

“The dollar’s recovery was triggered by a rebound in yields and an increase in inflation expectations.

The dollar stood close to a nine-week high against the euro.

US Dollar Up Ahead of Friday’s U.S. Payrolls Report