Dollar headed for the third winning week- eyeing Payroll and G7
As the US readies to mask the biggest national debt in history, the greenback got the lift across the board after ECB left its key interest rate unchanged at 2% amidst a contained inflation.
An interest rate differential bending towards US (at 2.5%) would benefit the dollar-based assets. On the data front, US Productivity rose at a 0.8% last quarter compared to prior 1.8% with an increase in the labor cost at 2.3% raising the threats of inflation. Services ISM index slipped to 56.4 this month from 57.3 earlier with a fall in the employment index to 52.25 from 55.5.
After weekly jobless claims fell by 9K to 316K, today’s non-farm payroll data is expected strong (200K) compared with 157K in December. Dollar could emerge unscathed from Fed Chief Alan Greenspan’s comments today on the US current account deficit. With US Treasury Secretary John Snow refraining from the G7 meeting (kicks off in London today), pressure on revaluation of Asian currencies could be toned down.
Technically, yen has breached the 104.20 trend line resistance paving way for 104.80. In spite of a strong UK services PMI of 55.9, Sterling’s gains were washed away as it lost a cent against the dollar.
The yellow metal sank to a 3½-month low breaking below $420 on a mixture of long liquidation and currency-related selling.
An interest rate differential bending towards US (at 2.5%) would benefit the dollar-based assets. On the data front, US Productivity rose at a 0.8% last quarter compared to prior 1.8% with an increase in the labor cost at 2.3% raising the threats of inflation. Services ISM index slipped to 56.4 this month from 57.3 earlier with a fall in the employment index to 52.25 from 55.5.
After weekly jobless claims fell by 9K to 316K, today’s non-farm payroll data is expected strong (200K) compared with 157K in December. Dollar could emerge unscathed from Fed Chief Alan Greenspan’s comments today on the US current account deficit. With US Treasury Secretary John Snow refraining from the G7 meeting (kicks off in London today), pressure on revaluation of Asian currencies could be toned down.
Technically, yen has breached the 104.20 trend line resistance paving way for 104.80. In spite of a strong UK services PMI of 55.9, Sterling’s gains were washed away as it lost a cent against the dollar.
The yellow metal sank to a 3½-month low breaking below $420 on a mixture of long liquidation and currency-related selling.
posted by Drs Search @ 10:05 AM
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