The U.S Dollar index held steady versus a basket of major currencies on Friday as investors focus shifted towards the U.S jobs data which will be announced later today. Furthermore, the U.S present Donald Trump nominated the Jerome Powell to be the next head of the federal reserve which came in line with expectations.
Regarding the U.S non-farm payroll for October expectation showed that the U.S economy is going to add 310,000 jobs in October, this figure is significantly higher than the number seen in September which came at minus 33,000 jobs mainly caused by the havoc caused by both hurricane Harvey and Irma which landed on the southern U.S stats.
Moreover, The ADP National Employment Report which measures the change in non-farm, private employment sector came at 235,000 in October well above expectations of 200,000 jobs, the APD gives a good indication for the government's non-farm payroll report which will be released later today.
Regarding the nomination of the federal reserve, the U.S president Trump is has nominated Jerome Powell to succeed Janet Yellen as the head of the U.S central bank.
Regarding the tax reforming, Republicans in the U.S. House of Representatives gave proposals to reform the tax code by cutting the corporate tax rate from 35 percent to 20 percent, reducing tax rates on companies' foreign profits and on individuals and families.
Cutting taxes is expected to have a positive effect on the greenback. However, there was uncertainty over how fast the reform will be implemented, according to analysts the proposals might not gather support from the U.S Congress.
Over in Europe, the common currency held steady against the U.S dollar in today’s session. However, the single currency rose against the U.S dollar on Thursday to trade at 1.1657.
Meanwhile, The Cable made its biggest one-day fall versus the dollar since June in Thursday’s session as the bank of England raised interest rates for the first time in over a decade. The Bank of England voted 7-2 to increase its benchmark Bank Rate from 0.25 percent to 0.50 percent as was expected but said any further increases will be very gradual causing the GBP/USD to traded lower on Thursday to settle at 1.3058.
Looking at safe-haven currencies, the Japanese yen rose against its dollar counterpart; the Dollar eased 0.1 percent after approaching, its highest levels since July 11 on Wednesday. The USD/JPY fell to trade at 114.08 at the close. Moreover, the USD/CHF also fell to trade at 0.9993 at the close.
In the precious metals front, Safe-haven asset gold rose against the greenback on Thursday to trade at 1275.80 at the close.
Elsewhere in Canada, the loonie rose versus the greenback supported by The fall of the U.S oil inventories by nearly 2.5 million barrels. Thus USD/CAD fell to settle lower at 1.2808.
Meanwhile, in Australia, the Aussie dropped in today’s session after the retail sales came flat missing expectations of an increase of 0.4 percent and below the previous reading of 0.5 percent.The AUD/USD traded at 0.7712 at yesterday’s close.
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