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Dollar rose on strong Chicago PMI, ahead of US jobs data today

Discussion in 'Forex Daily News & Outlook' started by prav, Jun 1, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar held below a three-month high against the Yen as investors await more US data including a monthly payrolls report today. The jobs data will provide more clues on whether the Federal Reserve will keep rates steady at the current 5.25%, after a strong report on regional US business activity on Thursday reinforced such views and gave a boost to the Dollar. The data offset a weaker-than-expected US economic growth number for the first quarter reported earlier and reduced the perceived chances of interest rate cuts by the Federal Reserve this year. UsdJpy climbed as high as 121.99, the highest since mid-February. Traders said greater risk appetite, backed by a rise in global stock markets as Chinese shares rebounded after a sell-off, encouraged investors to resume carry-trades in which low-yielding currencies like the Yen are borrowed to fund investment in higher-yielding currencies and assets.


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