US Dollar weakens ahead of NFP data release

Daily Currency Update

The US Dollar weakened against other major currencies on Thursday following the mixed data released. The US 10-year Treasury Yields dropped more than 1% placing additional pressure on the Dollar. Meanwhile, the Bank of England kept the interest rate unchanged at 5.25%. During the press conference, Governor Andrew Bailey commented saying that an additional rate hike could be appropriate, however, the Governor of the Bank of England dismissed rate cuts for the UK.

The next big news awaited comes from the Nonfarm Payrolls report from the United States on Friday. The data release could have a significant role to play in the US Federal Reserve's interest rate outlook. The market anticipates this reading and release as it can be highly important to how the US Dollar reacts to the labor data. Friday’s Nonfarm Payrolls is expected to show that the US economy added 180K jobs last month in comparison to the 336K reading in September. The Unemployment Rate is also expected to remain at 3.8%. While Average Hourly Earnings measures wage inflation the reading will be also closely watched by investors for how the Federal Reserve views their interest rate outlook and the next trading direction for the pair.