Forex Markets Remain Lackluster Ahead of Jobs Report
April 01, 2010 9:58 AM
Currency markets are mostly quiet on Thursday as participants have remained on the sidelines most of the week due to various factors from the US. This includes the March Employment Report due Friday and, on a lesser level, the Easter and Passover holidays.
Economists expect tomorrow's numbers to reflect the economy added 190,000 jobs last month, an outcome that would likely lift the USD and boost expectations for higher U.S. interest rates.
The U.S. dollar hit a seven-month high against the yen on Thursday as Japanese investors reacted to Japan's fiscal new year by moving funds overseas into higher-yielding currencies and assets.
Strong manufacturing data from Europe and Asia is encouraging risk appetite and bolstering the view that recovery is taking hold in economies around the world, keeping the USD lower against other major currencies, including the GBP and CAD.
Some analysts think the lackluster performance this week may be because many participants are wary that the disappointing ADP employment data released on Wednesday may not be an accurate indicator of the non-farm payroll report tomorrow.
In other currencies, euro-sterling is at its lowest level since late Feb. In addition CHF continues to rise. The euro-franc is at new record lows.
