The U.S. Dollar is trading flat to lower at the mid-session as traders remain cautious ahead of Friday’s U.S. Non-Farm Payrolls Report. Earlier this morning the Dollar showed little reaction to the European Central Bank’s decision to hold interest rates steady and a slight drop in U.S. Weekly Initial Claims.
Jobless claims remained a concern among investors because they remain at a high level. This is an indication that the U.S. economy is cooling while fueling worries that the recovery may not be sustained if private firms continue to refrain from hiring new workers.
The Euro is holding steady following the ECB’s decision to hold interest rates steady. The market had a positive reaction to the comment from ECB President Trichet who said the recovery “should proceed at a moderate pace”.
Mortgage issues are helping to put pressure on the British Pound. A choppy stock market is leading to mixed results in the commodity-linked currencies. The New Zealand Dollar is trading better, but the Australian and Canadian Dollars are trading flat which may be a sign that Wednesday’s strong rallies may have been overdone.
Although the Dollar is down this week, many
large traders and institutions have been on the sidelines due to tomorrow’s
employment report and Monday’s U.S. Labor Day holiday leading to speculation
that this week’s action was due to thin trading conditions.
The U.S. Dollar is trading flat to lower at the mid-session as traders remain cautious ahead of Friday’s U.S. Non-Farm Payrolls Report. Earlier this morning the Dollar showed little reaction to the European Central Bank’s decision to hold interest rates steady and a slight drop in U.S. Weekly Initial Claims.
Jobless claims remained a concern among investors because they remain at a high level. This is an indication that the U.S. economy is cooling while fueling worries that the recovery may not be sustained if private firms continue to refrain from hiring new workers.
The Euro is holding steady following the ECB’s decision to hold interest rates steady. The market had a positive reaction to the comment from ECB President Trichet who said the recovery “should proceed at a moderate pace”.
Mortgage issues are helping to put pressure on the British Pound. A choppy stock market is leading to mixed results in the commodity-linked currencies. The New Zealand Dollar is trading better, but the Australian and Canadian Dollars are trading flat which may be a sign that Wednesday’s strong rallies may have been overdone.
Although the Dollar is down this week, many large traders and institutions have been on the sidelines due to tomorrow’s employment report and Monday’s U.S. Labor Day holiday leading to speculation that this week’s action was due to thin trading conditions.
