The greenback dollar continued to strengthen at the European session ahead of the release of US NFP employment data tonight.
U.S. job growth is expected to accelerate in February as more service businesses reopen, as well as being affected by the launch of vaccines and stimulus assistance by the government.
The U.S. economy is expected to add 197,000 jobs in February, after recording an increase of 49,000 jobs in January. Meanwhile, the unemployment rate is projected to remain unchanged at 6.3%.
However, the market is also cautious as they have previously been exposed to weaker-than-expected private sector ADP employment reports.
Weak employment data will lead to stock declines and risky currency sales. This also means it is positive for the US dollar as a safe-haven that has previously benefited from rising US bond yields.
Meanwhile, the US dollar’s surge continued to push euro trading lower to a three -month low, with the EUR/USD pair beginning to test the next support level at 1.90000 at the start of the European session.
The pound also showed a significant decline as the government continued its efforts to reopen the economy by expanding vaccination programs that now approach a third of the UK population.
