Non farm payrolls fail to boost Dollar
6 May, 2014
After the long bank holiday weekend, the US Dollar remains extremely cheap, despite Friday’s non-farm payroll figures in the States. These are the main monthly measure of the US employment market, and showed an impressive 288,000 jobs were added to the US economy in April, reducing unemployment to 6.3%, ahead of analysts’ expectations. We would expect to see the price of the greenback increase, but in a sign of the current weakness of the US currency, instead by this morning the dollar has weakened to its cheapest level against the Pound since August 2009.
If you have US Dollars to buy (or pegged currencies such as UAE Dirham), it might be worth considering a Forward Contract to lock into current favourable rates.
In Europe on Friday there was also good news for jobs, with unemployment across the single currency bloc steady at 11.8%. This did strengthen the Euro a little, although rates are still not too far off the highs of the year for those of you buying in the Eurozone. The European Commission yesterday increased its growth forecasts to 1.6% for this year, and if we do see the Eurozone recovery gathering pace over the coming months, then we are very likely to also see a more expensive Euro on the currency markets.
Today there is no major UK data due out, except services sector growth at 9.30am. Elsewhere we have the Australian budget release and New Zealand unemployment, but the week is quiet until Thursday when several important data releases are scheduled including the monthly European Central Bank press conference – key for those of you buying or selling Euros. Friday also sees the UK trade balance and industrial production figure. With rates against many major currencies looking good at the moment, consider your options while the market is quiet and don’t lose out on preferential rates while they are available.
- 2020 (59)
- 2019 (190)
- 2018 (229)
- 2017 (253)
- 2016 (254)
- 2015 (253)
- 2014 (252)
- 2013 (287)
- 2012 (270)
- 2011 (576)
- Brexit deal to be done, or going, going, gone? 25 November, 2020
- Sterling starts the week down from the highs of last week 16 November, 2020
- Votes are in – albeit still being counted, will Donald trump Joe? 4 November, 2020
- No categories