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USD Forex Market Remains Steady Despite Turbulent Week

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What is a Spread in Forex?
  • US Dollar Index Pushing Back Key Mark
  • Non-Farm Pay Roll Numbers Eyed Today
  • Markets Continue Higher Despite Chaos

Nobody could argue that it has been a turbulent week for the United States. This has been lightly reflected in the strength of the US Dollar forex market with the Greenback peeking back above the key level of 90 points against other major currencies in the US Dollar Index. This number though is not a huge divergence from the current market and shows a sense of steadiness while non-farm payroll numbers for December are awaited later today. Despite the Capitol Hill chaos of the week, Wall Street prices have also continued to reach new highs daily.

Dollar Remains Steady but Stronger

Nothing has been able to sway the movement away from the US Dollar in recent weeks. This came as investors latched on to continued optimism surrounding COVID-19 vaccines, the hope, and delivery of more stimulus, and a general risk-on mood being harnessed. The events of this week dialed back the drive out of the Dollar at least a little. The Dollar Index returning above 90 after hitting multi-year lows of late.

Even this though is not a huge change with the currency retreating again on positive news and signs that the coronavirus vaccine may be effective against the newest strains of the virus discovered in the UK and South Africa. An increasing treasury yield though is expected to lend a little more strength to the Dollar in the weeks ahead.

Key December Data to Come

Those forex trading today are more than likely to have an eye on a very busy economic calendar day in the US. The non-farm payroll and unemployment figures for December are set to be released later. This could also bring some strength back to the US Dollar with analysts predicting a very slim increase in the number of jobs added.

Forex brokers and traders alike will be keen to note what kind of impact the continuing spread of COVID-19 cases through December has had on the employment figures with some even gearing up for the possibility of negative numbers for the first time in several months. The overall unemployment rate is also expected to rise by the slimmest of margins to 6.8% when the numbers are released by the Labor Department this morning.

Wall Street Pushes Ever Higher

The gains in the stock market have seen no resistance of late as they continue to diverge from the reality on Main Street. Yesterday saw more record numbers with all the key indices up once again and the NASDAQ closing at a record high above 13,000 points.

Wall Street traders too appear to be awaiting the outcome of the non-farm payroll numbers as a key driver for the day with very little change in the pre-market. Any miss here could set the tone for ending a challenging week though more unexpected events have also been overlooked by the markets to date.

 

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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