The U.S. NFP jobs report to be published today will determine whether the Federal Reserve’s (Fed) goal of seeing continued labor market growth is achieved.
The opening of the Asian session saw US dollar trading remain stable against a basket of other major currencies. The dollar index eased slightly to 96.20.
Earlier, the king of the currency eased in the New York session following some slightly disappointing data readings.
The number of U.S. jobless claims fell slightly off expectations by rising by 207,000 last week, exceeding forecasts for an additional just 199,000. In addition, US ISM services data readings showed slower -than -expected growth in December.
However, the greenback dollar later managed to erase losses following a statement by U.S. central bank policymakers, in which St. Louis Fed President James Bulalrd said they could raise interest rates in March.
While San Francisco Fed President Mary Daly told that the central bank needs to raise interest rates to maintain economic balance.
In the hope that the NFP report to be released in the New York session will continue to show strengthening, investors are now taking cautious action in placing positions.
Looking at the European currency, the pound proved its resilience to continue to strengthen at a one -month high against the greenback dollar. Prime Minister Boris Johnson’s move to ease sanctions in the UK has left investors confident of a recovery in the country.
