Dollar Soft Ahead of Non-Farm Payrolls

The US dollar was soft during Thursday’s trading as economic data from the United States was not particularly favorable. Losses were not big, though, and the currency may yet bounce if non-farm payrolls turn out to be good.

Institute for Supply Management reported that manufacturing Purchasing Managers’ Index fell from 51.1 percent in August to 50.2 percent in September. Claims for unemployment benefits rose by 10,000 to 277,000 last week. The data suggests that US economic growth remains somewhat vulnerable.

The disappointing reports came out a day before the release of non-farm payrolls. NFP, due to release on Friday, are expected to show solid growth by 202,000. It is a very important report, and any deviations from expectations can have a major impact on the Forex market, and the dollar in particular.

EUR/USD was up from 1.1175 to 1.1193 as of 22:38 GMT today after falling to the minimum of 1.1134 intraday. GBP/USD was little changed at 1.5133 while USD/JPY inched down from 119.87 to 119.82.

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