The US Dollar was unable to maintain positive momentum and yesterday touched a 3-day trough, largely as a result of an improvement in risk appetite. US Labor data which was released earlier this week showed that new unemployment claims hit a one year trough, falling below 500,000; analysts say that that is a clear indication that the recovery in the US labor market is on the brink of a new phase. Looking ahead, market focus will be on the Non-Farms Payroll report for April which is due out later today. In the latest poll, economists are predicting that the data will show that 978,000 new private sector jobs were created last month, up from 916,000 in March. The US unemployment rate is also likely to show a decline to 5.8% from 6%.
In Asian trading as of 9:36 am, the USD/JPY was trading at 109.0510 Yen, down 0.05%; the pair has ranged from 108.932 Yen to 109.197 Yen. The EUR/USD was higher at $1.2067, a gain of 0.0298%, off the session peak of $1.20703. The GBP/USD was also up at $1.3895, a gain of 0.0331%, with the session peak recorded at $1.39070.
Canadian Labor Data Due Out
Also due out later today is the labor data from Canada. Economists have predicted that the Canadian unemployment rate for April will have risen to 7.8%, while the Net Change in Employment will come in at -175,000, well below the 303,100 in March. The Participation Rate is expected to show a slight decline to 64.9%, down from 65.2%. The USD/CAD was trading at C$1.2159, up 0.04%; the pair has ranged from C$1.21457 to C$1.21634.