9 Jan 2015
USD Index shows signs of weakness ahead of NFP
FXStreet (Mumbai) - The US dollar is weakening against major currencies ahead of the critical December Non-farm payrolls report in the US. The USD index has eased-off slightly from the 12-year highs tracking exhaustion in the Treasury yields.
The US dollar index currently trades 0.17% lower at 92.39 levels, down from the 12-year high of 92.76 levels hit yesterday. The greenback, however, remains well supported on labor market strength indicated by the upbeat ADP jobs report earlier this week. Thus, markets expect the NFP report to show continued improvement in the labor market in December, despite which the USD/JPY pair has weakened to trade 0.35% lower at 119.24 levels, as the 10-yr Treasury yield in the US declined from 2.03% to 2.002%.
Meanwhile, the EUR/USD is witnessing a weak recovery, up 0.17% at 1.1812. The data released earlier this week showed Eurozone in Deflation, which added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22.
The GBP/USD pair has also gained 0.38% to 1.5146 after the data released today showed Trade deficit in November fell to to GBP 1.4 billion; lowest since June 2013. Meanwhile, the drop in Industrial production was shrugged-off by the markets.
Elsewhere, the Antipodeans have turned in a mixed performance. The AUD/USD pair is up 0.16% at 0.8135, while the NZD/USD has declined 0.18% to 0.7810 levels. The USD/CAD pair is trading largely unchanged for the day at 0.05%, while the USD/CHF has weakened 0.16% to 1.0168 levels.
The US dollar index currently trades 0.17% lower at 92.39 levels, down from the 12-year high of 92.76 levels hit yesterday. The greenback, however, remains well supported on labor market strength indicated by the upbeat ADP jobs report earlier this week. Thus, markets expect the NFP report to show continued improvement in the labor market in December, despite which the USD/JPY pair has weakened to trade 0.35% lower at 119.24 levels, as the 10-yr Treasury yield in the US declined from 2.03% to 2.002%.
Meanwhile, the EUR/USD is witnessing a weak recovery, up 0.17% at 1.1812. The data released earlier this week showed Eurozone in Deflation, which added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22.
The GBP/USD pair has also gained 0.38% to 1.5146 after the data released today showed Trade deficit in November fell to to GBP 1.4 billion; lowest since June 2013. Meanwhile, the drop in Industrial production was shrugged-off by the markets.
Elsewhere, the Antipodeans have turned in a mixed performance. The AUD/USD pair is up 0.16% at 0.8135, while the NZD/USD has declined 0.18% to 0.7810 levels. The USD/CAD pair is trading largely unchanged for the day at 0.05%, while the USD/CHF has weakened 0.16% to 1.0168 levels.