The US dollar traded near the highest level in a month as Forex market participants hope that this week’s employment reports will show stable growth, giving the Federal Reserve an excuse to reduce monetary stimulus.
Analysts predict that today’s ADP employment report will show an increase by 161,000 jobs. Non-farm payrolls grew at the same rate last month according to forecasts. The unemployment rate should fall by 0.1 percentage point to 7.5 percent or at least traders hope so.
All in all, speculators expect positive data this week and such expectations drove the dollar higher. Robust employment growth should encourage the Fed to scale back quantitative easing and such possibility is definitely bullish for the US currency.
EUR/USD dropped from 1.3061 to 1.2976 on the previous trading session and traded at about 1.2972 as of 2:49 GMT on the current session. GBP/USD ticked down from 1.5212 to 1.5152 and remained near this level today. USD/JPY edged up from 99.63 to 100.61 before trading at 100.52.
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