Weakening USD Forex Market Regains Ground
- Dollar bounces off NFP numbers
- Big losses for the GBP before the rate hike
- Calm Stocks with Upcoming Data
The end of the week brought another bounce in the US dollar exchange market. The currency was trading slightly lower through the middle of the week, but gained more positive momentum as attention shifted to the US NFP jobs numbers to be released today. today. On the other side of the pond, there were big losses for the pound as the Bank of England announced a rate hike and on Wall Street traders remain ready to move when the employment data will be revealed.
USD up again ahead of data
The US Dollar has had a bit of a bumpy week, rising at the start of the week and then losing ground in recent days. It did, however, manage to regain some ground and posted modest gains through Friday. The currency is trading at around 1.02 against the Euro and 1.215 against the Pound. This comes ahead of the NFP employment numbers expected today.
Those numbers, analysts say, are expected to show 258,000 jobs were added in July. This is down from the previous monthly number of 372,000, although this is not absolutely bad for the Fed, with unemployment expected to hold at around 3.6% and wages to rise 0.3%. as the country and others around the world continue to struggle with runaway inflation.
Sterling struggles as rate hike announced
The pound plunged yesterday as the fight for those trading the currency continued. The pound has been unable to gain momentum in recent months, with a number of domestic issues hampering progress. These include Brexit as well as the premature exit of leader Boris Johnson. Now the Bank of England has announced an upcoming rate hike.
Policymakers announced that rates had been hiked 50 basis points to 1.75% since their August policy meeting. This was accompanied by half-hearted comments on the economic outlook that the UK economy could slip into recession in the last quarter of the year. This caused the pound to fall significantly before stabilizing.
Quiet stocks on jobs data day
On Wall Street, stockbrokers were spared big moves such as those seen by currency brokers in the pound yesterday. Trading remains calm and cautious as usual in the morning ahead of any major data releases. Employment figures are due for the month around 8:30 a.m. Friday.
These numbers could help move the market in either direction if they fall short of expectations with little other information on the record in terms of important economic data. Major US markets also traded relatively calmly throughout the week. The S&P 500 and Dow Jones are both trading down around 0.5% from their level at the start of the week, while the Nasdaq is up just over 2.5%.