July 3, 2021

The heartbeat awaits the NFP report getting stronger, Are You Ready?

 The greenback dollar surged further in the European session as markets looked optimistic with tonight’s US NFP jobs report expected to show improvement.

The dollar index strengthened around a three -month high of 92.60 against most major currencies, and was on track to post further weekly gains.

The U.S. economy is expected to add as many as 700,000 jobs in June, following a weak increase in the previous month of 559,000. Meanwhile, the unemployment rate will continue to decline to 5.6% from 5.8% previously.

Meanwhile, major currencies continued to trade under pressure following strong US dollar trading and uncertainty posed by a new outbreak of coronavirus that could hamper economic reopening efforts in Europe and Asia.

The euro continued to trade gloomily as European Central Bank (ECB) President Christine Lagarde said the recovery in the European Zone was still not strong and signaled that she was not yet ready to stop the Pandemic Emergency Purchase Program (PEPP).

Most recently, the World Health Organization (WHO) warned that Europe faces the risk of a new wave of Covid-19 following a 10% increase recorded in the last week.

Meanwhile, the pound continued to weaken, squeezed by pressure from the contagion of the Delta variant which caused cases of infection in the UK to rise sharply. Covid-19 cases in the UK have increased by around 71.8% in a week, with the latest figure recorded a jump of 27,989 cases.