Good Expectations For US NFP! Will the USD Continue to Rocket? - Kakiforex.com - Financial Market Media No. 1 in the World Good Expectations For US NFP! Will the USD Continue to Rocket? Good Expectations For US NFP! Will the USD Continue to Rocket?
InstaForex

August 6, 2021

Good Expectations For US NFP! Will the USD Continue to Rocket?

The US dollar giant resumed gains on Friday following a recorded increase in US government bond yields, ahead of the release of NFP jobs data tonight.


Rising bond yields and demand for the U.S. dollar indicate that investors are expecting a stronger reading of the NFP, which is expected to add as much as 870,000 jobs in July.


The decline in the number of U.S. jobless claims has helped bolster market expectations for better NFP readings, having been frustrated by less encouraging ADP private employment data.


The dollar index, which measures the strength of the greenback against six other major currencies, traded higher at 92.34.



Aside from the NFP data, negotiations on a U.S. infrastructure bill are also underway, with the U.S. Senate expected to approve a $ 3.5 billion budget thereafter.


Meanwhile, the pound changed little following the outcome of the Bank of England (BOE) policy meeting on Thursday. As expected, the central bank maintained interest rates at 0.10% and the bond -buying program was also unchanged.


Policymakers predict inflation could rise to 4% in the last quarter of this year, but say it is only temporary. They also said that some tightening of monetary policy may be needed in the coming year.


This seemingly neutral statement failed to stimulate the pound’s rise higher, causing it to remain traded around the same price level at 1.39100 against the USD.