Home Daily Commentaries USD remains steady ahead of Non-Farm Payroll data

USD remains steady ahead of Non-Farm Payroll data

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Friday 5 April, 2024

Daily Currency Update

The US dollar has stabilized against other currencies after rebounding from a recent two-week low. Traders are gearing up for a crucial US jobs report later in the day, while also expressing concern about escalating tensions in the Middle East.

Last week was a volatile one for the dollar, initially reaching a five-month high before dropping to a two-week low. This fluctuation came after an unexpected slowdown in US services growth, which reinforced expectations of potential interest rate cuts.

Key Movers

Minutes from the recent ECB meeting held in March indicated a likelihood of an interest rate reduction by June, with further cuts anticipated later in the year.

The minutes highlighted that “The case for considering rate cuts was strengthening”. Forecasts suggest that the ECB will proceed cautiously from June onward, potentially pausing after July, amidst concerns regarding the trajectory of wage growth.

Expected Ranges

  • GBP/USD: 1.2585 - -0.7345 ▼
  • GBP/EUR: 1.1615 - 1.1685 ▼
  • EUR/USD: 1.0815 - 1.0875 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.