DOLLAR SHOWED TEMPORARY GROWTH DUE TO WEAKNESS IN FOREIGN CURRENCIES

On Friday, Dollar has managed to recover due to weakness in foreign currencies rather than recovering from its actual strength. Brexit held back the British pound although it was Euro and Canadian dollar who managed to rise over the past couple of days. Despite this week’s U.S data, the dollar index reached to new high this year that closed in a high of 97.71 in 2018. The wages and jobs data should gibe with the expectations but if it disappoints then it could force Fed’s view of the economy and reduce the possibility of increasing rate in future. With this, the dollar may fall sharply.

The unemployment rate in February is expected to fall from 4% to 3.9%. The average hourly earnings in wage sector is expected to rise by 0.3% on monthly basis and 3.3% on yearly basis.

Now the future forecast of the U.S market depends on new data releases. As according to the expectations, 180,000 jobs have been added in February, target falls somewhere around 160,000 – 190,000 jobs. Any data falling above this range can boost the dollar rate but will unlikely to create a significant impact unless the wages show up rise in the future. Any data below this range can sharply result in dollar’s sell off.

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