U.S. Dollar continued its recovery for the third straight session, despite jobless claims rising more than expected last week, posting the biggest gain in more than a year, but the overall trend continued to point to a reinforced labor market.
USD index rose by 0.5% and settled at 93.75 at the end of yesterday’s trading session.
Euro declined vs. USD and traded at $1.14, negatively affected by strong USD. The single European currency could be affected by the U.S. April payrolls report and decline to $1.13.
GBP traded in a narrow range yesterday vs. USD, negatively affected by the slowdown of U.K service sector.
USD/JPY traded in a narrow range as well as the pair is awaiting the U.S. April payrolls report. Friday's payrolls data show US employers added 202k jobs in April following a 215k increase in March, with the jobless rate holding at 5.0%.
Gold traded in a limited range amid lack of economic data and settled at $1,280. Positive U.S. data could open the door for the yellow metal to test $1,267.
On Thursday, oil prices jumped by 3% due to the Canada wildfire and escalating tensions in Libya stoked fears among traders over a near-term supply shortage.
The most important economic events:
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.