US Dollar Still Strong As Euro Struggles
The US dollar continued to increase against the Euro in market deals early on Friday, as investors expect reports of the United States employment rate. However, the Euro is still struggling following the outcome of the European Central Bank meeting on Thursday, intending to begin from next week the purchase of bonds.
The US dollar has remained on top for over eleven months now, against other main currencies, however investors are forecasting a more upward movement after the release of the job data later on Friday.
London based French bank BNP Paribas’ Stategist, Michael Sneyd stated that “it certainly looks like being a classic pre-payrolls morning. We are dollar bulls but the dollar has done very well since the ISM services and ADP jobs figures on Wednesday so that raises the bar substantially for the numbers today to push the dollar higher.”
Analyst expected more employment records for the United States much more than the present figure of 240,000 that was added in the month of February. They actually forecasted an addition of 250,000 more jobs to have been made available in february.
European early Friday deals left the US dollar 0.2 % much more than the closing value of $1.1013 on Thursday’s trade. Hence, the US dollar rose against the Euro at 0.2 percent on Friday morning.
The European Central Bank’s commencement of the quantitative easing programme which entails buying of bonds from next week has put a lot of pressure on the Euro at the moment. A notable strategist at Barclays said that “the dollar is following a well-worn path of being bought on expectations of strong payrolls. Yellen touched on the Fed’s data dependent aspect and the market has become more sensitive to indicators”.