Daily FX Wrap Up

Waiting for the NFP

The US Dollar surged once again in the early morning trading session, smashing the Yen, Euro, and Pound by roughly 100 points. While today’s news releases were as packed as yesterday’s, the impact on the market was almost nonexistent. The Dollar continued a gradual decline, hitting 1.3075 against the Euro. What may seem odd from a fundamental approach is that news out of the Eurozone and UK was not horribly negative, while reports out of the US continue to point to a potentially dreadful Non-Farm Payroll figure for Friday. The highly-anticipated NFP Report is expected to show a near-record decline, and if the markets follow through with their anticipated reaction, the last two days of gains for the Dollar could disappear. Also expected for the near future is a drop in US interest rates and an increase from the Bank of Japan and the European Union – coupled with positive data, this would give the US Dollar a bit of staying power for the upcoming year. As we move into the Asian sessions, the US Dollar is currently trading at 119.02 versus the Yen and 1.3080 against the Euro. XPRESSTRADE Analyst David Hilgeman