USD grew against the major currencies

Noam Stiekema

The USD grew and remains near the reached earlier in the week 10-week high against the JPY before the Ministry of Labor report about the new jobs in USA. The investors expect the data with caution, since traditionally they are crucial in making decisions by the Federal Reserve on its monetary policy. Meanwhile, the EUR […]

USDThe USD grew and remains near the reached earlier in the week 10-week high against the JPY before the Ministry of Labor report about the new jobs in USA. The investors expect the data with caution, since traditionally they are crucial in making decisions by the Federal Reserve on its monetary policy. Meanwhile, the EUR reached 1-month low against the USB after the ECB President Mario Draghi confirmed its position that bankers are prepared to take additional measures to prevent the risk of deflation in the Eurozone.

The report of the US Ministry of Labor probably will show that the country opened 200,000 new jobs in March. If the forecast is correct, this will be the most serious increase since November. The unemployment rate will drop to 6.6% from 6.7% during the previous month, according to the analysts.

The optimism of the markets is fueled by a number of experts who believe that the increase in non-agricultural employment in USA will be even greater than projected estimates. Such data will provide a strong boost to the USD, as they could to get the Fed to reconsider plans to increase key interest rates.

The yesterday’s meeting of the European Central Bank ended without major surprises. The key interest rates were kept at a record low level of 0.25% and interest on bank deposits at the central bank were left at 0%.

During the press conference after the meeting, Mario Draghi said that he did not exclude the use of traditional mechanisms to stimulate the economy. The discussion of quantitative easing programs also remains among the variants of the central bankers. The Draghi’s statement makes it clear that central bankers are more likely to resort to the use of incentives to stimulate the economic growth and to avoid the risk of deflation in the region.

The EUR traded at 1.3700 USD, close to its lowest value for the day. The pair AUD/USD is traded at 0.9240, which is the highest level for today, while USD/JPY is traded at 103.85. The USD is poised to finish the week with a 1.1% rise against the JPY and 0.3% against the EUR.

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