7 Jun 2013
Flash: US dollar corrects sharply lower ahead of NFP report - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the US dollar weakened sharply yesterday with the dollar index falling back towards support from its 200-day moving average at around the 81.0-level, erasing all of its gains since late February.
He adds that USD weakness has been mainly concentrated against the major currencies of the euro, pound, Swiss franc, and yen with commodity and high yielding currencies continuing to under perform. Further, the sharp adjustment lower for the US dollar appears to have been mainly driven by position adjustment ahead to today’s US non-farm payrolls which is expected to reveal slower employment growth in May which may act to delay the Fed from tapering QE.
He adds that USD weakness has been mainly concentrated against the major currencies of the euro, pound, Swiss franc, and yen with commodity and high yielding currencies continuing to under perform. Further, the sharp adjustment lower for the US dollar appears to have been mainly driven by position adjustment ahead to today’s US non-farm payrolls which is expected to reveal slower employment growth in May which may act to delay the Fed from tapering QE.