The dollar oscillated around two-month lows on Thursday as traders weighed the impact expected US jobs data could have on Federal Reserve monetary policy.
The dollar index, which this week reached its lowest level in two months, rose to 101.87 points.
The labor market picture was unclear following revisions to previous claims data after the US government updated the model it uses to adjust the series for seasonal fluctuations.
According to the Department of Labor, initial claims for state unemployment benefits fell by 18,000, to 228,000 according to seasonally adjusted figures, in the week ending April 1. The data for the previous week was reviewed and showed 48,000 more applications than previously reported. Economists polled by Reuters had forecast 200,000 applications for the past week.
The non-farm payrolls report, due to be released on Friday, the day many markets around the world are closed, will follow disappointing data from the Institute for Supply and Management (ISM) manufacturing and services sector and figures from private employment on wednesday.
For the markets, this could make for a very volatile session.
Michael Brown, a trading strategist at TraderX, said the payroll numbers had beaten expectations for 11 straight months, the longest unbroken streak of positive surprises in decades.
“That has to end at some point. It’s almost ironic that it ends on Good Friday, when liquidity is horrible and no one is trading the markets,” he said.
The yen, which also received some support from safe-haven offerings, was down slightly on the day at 131.37 to the dollar.
In other currencies, Sterling was up 0.07% on the day at $1.247, while the euro was little changed at $1.091.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
