The greenback was strong against most major currencies yesterday and continues to edge higher, as it gained on the back of Federal Reserve Chairman Jerome Powell’s comments on inflation. He said that the factors dragging on inflation might be “transitory” and he saw no case for a rate move in either direction.
The dollar also benefitted from the pound weakening due to the Bank of England’s interest rate announcement.
Today we see the release of US Non-Farm Payrolls. The US labour market is forecasted to be back on a stable and positive trend after data has been fairly choppy in recent months. If we see positive results, this could have a positive impact on the dollar.
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