Good morning,
Dollar strength has been seen across the board through the Asian trading session, which has now seen GBPUSD give up further on the yearly highs of last week. Now the exchange rate sits over 2.7% lower compared to Wednesday last week. EURUSD also sits at the lowest point of the year so far, with current market rates at 1.1924 at the time of writing.
The dollar strength links back to risk in the market, the story throughout the Covid pandemic, which has seen swings either way as the global situation unfolds on what seems like a daily basis. Albeit less so as of late, with the condition seemingly improving. Stocks fell in US markets as Jerome Powell spoke yesterday, about inflation and the bond market. Off the back of Congress passing the recent $1.9tn stimulus plan, markets are concerned about the potential of inflation rising.
Today at 1:30pm the US will release nonfarm payroll data. A release which is closely monitored for signs of health in the employment industry in the States. It is expected that over 180,000 new jobs have been added to the economy in February and any number either side of the expectation could see USD move in line with the result.
Have a great weekend.
Jack Nicholls, Relationship Manager.
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