Sentiment is turning away from the greenback
The US dollar was unable to maintain positive momentum and hit a 3-day low yesterday, largely due to improving risk appetite. US labor data released earlier this week showed new jobless claims hit a one-year low, falling below 500,000; Analysts believe this is a clear indication that the recovery in the US labor market is on the brink of a new phase. Looking ahead, the market will focus on the April Non-Farm Payroll report, due for release later today. In the latest poll, economists predict the data will show 978,000 new private sector jobs were created last month, up from 916,000 in March. The unemployment rate in the United States is also expected to drop from 6% to 5.8%.
In Asia, at 9:36 am, USD / JPY was trading at 109.0510 yen, down 0.05%; the pair ranged from 108,932 yen to 109,197 yen. EUR / USD was higher at $ 1.2067, a gain of 0.0298%, outside the session high of $ 1.20703. GBP / USD also rose to $ 1.3895, a gain of 0.0331%, with a session peak recorded at $ 1.39070.
Canadian labor data at maturity
Canada’s labor data is also due out later today. Economists have predicted that the Canadian unemployment rate for April will rise to 7.8%, while the net change in employment will stand at -175,000, well below the 303,100 in March. The turnout is expected to drop slightly to 64.9% from 65.2%. USD / CAD was trading at C $ 1.2159, up 0.04%; the pair ranged from CAN $ 1.21457 to CAN $ 1.21634.