Dollar strengthens against the euro and yen

04.11.2015

On Wednesday, dollar strengthened against euro and yen, continuing to rise after yesterday's session as investors tuned for Friday publication of the US employment data.

The USD index, which tracks the US currency against a basket of six major rivals, rose 0.24% to 97.50.

The euro weakened; EUR/USD fell 0.34% to 1.0926, and the EUR/JPY pair lost 0.25% to get traded at 132.4.

The single currency remains under pressure after European Central Bank President, Mario Draghi, pointed on Tuesday to the possibility of further easing of monetary policy.

Draghi said the bank officials will review the current degree of monetary stimulus in the December meeting, and confirmed that they remain ready and have the opportunity to act, in order to support the growth of prices in the Eurozone.

USD/JPY has grown by 0.1% to 121.18, being traded below the recent high at 121.37.

Investors are focused on Friday's US employment data for October, which may give further clarification on the possible timing of raising interest rates.

Last week, the Federal Reserve kept the interest rates at current levels, but indicated that it may raise borrowing costs at its December meeting, which could be the first time since 2006.

Later today, the US is to publish data on the growth of jobs in the private sector, the study of business activity in the services sector, as well as a report on the trade balance for September.

Also today, Fed Chairman, Yellen, will speak before the commission in the Congress on the role of the US central bank to control the financial system of the country.

Also on Wednesday, the pound rose against the dollar after data showed that service sector activity in the UK last month rose sharply, but the rise is restrained as the American currency strengthened as mentioned above.

Markit said that the index of business activity in the UK services sector rose to 54.9 in October from 28-month low of 53.3 in September, beating forecasts of growth at 54.5.

After the release of data, GBP/USD pair peaked at 1.5445 from 1.5410 yesterday.

The report was published after earlier this week, similar researches of manufacturing and construction sectors have shown that economic growth accelerated in the beginning of the fourth quarter.

Back Next suggested article