US jobs data strengthens dollar, plus this week’s news

8 October, 2012

Robin Haynes

Friday saw the key monthly American employment data come in exactly as expected – but positive revisions to previous months’ job creation figures, along with an overall drop in the US unemployment level, saw the Dollar gain strength on Friday afternoon. Rates for buying the Greenback against the Pound fell nearly a cent, although we are still seeing levels near their best this year for those of you sending money to the USA or in pegged currencies such as the UAE Dirham.

Sterling also finished the week down against the Euro, which gained strength after ECB President Draghi’s assurances to markets over the future of the single currency seemed to strike a positive note.

This week, we have a quiet week of scheduled data releases, with the only major UK news due out being the latest trade balance and independent GDP estimate tomorrow.

Tomorrow, Chancellor Merkel meets Greek counterpart Samaras in the latest round of talks focussed on the Greek bailout – expect Euro strength and lower rates for buying Euros if the political consensus around the aid gathers pace.

Today is also a US bank holiday (Columbus Day), so all worldwide US Dollar payments will be delayed. With the monthly budget statement, trade balance and jobless claims all due out from the States on Thursday, there is likely to be dollar volatility later in the week.

For your own transaction, call the friendly experts at Currency Index for the latest news and a free quote. Markets remain susceptible to changes in rates and we are here to help by alerting you to any movements in your favour.