Dollar Rises as US Jobs Growth Picking Up
The US dollar continued its upward trend yesterday, driven in part by improved employment growth data. The latest figures indicate that US jobs growth is picking up, which provided support for the greenback.
On the other hand, the pound (GBP) traded unevenly due to a sharp increase in UK government borrowing in August, although it managed to avoid a decline thanks to stronger-than-expected manufacturing data from the Confederation of British Industry (CBI) and falling oil prices. Looking ahead, GBP investors will be watching the UK's preliminary services PMI for September this morning.
The euro (EUR) was also affected by a lack of fresh Eurozone data, leaving it vulnerable to external influences. Lower oil prices did ease some concerns surrounding an energy crunch across the Eurozone, but the single currency was hindered by its strong negative correlation with the US dollar. The latest PMIs for the Eurozone were released this morning, which could potentially boost the euro.
The Canadian dollar (CAD) remained relatively flat despite falling oil prices, while the Australian dollar (AUD) fell as the European session got underway. New Zealand's currency also moved lower overnight due to uncertain risk sentiment. Meanwhile, US President Donald Trump's remarks on Iran and a potential deal weighed in favor of the US dollar.