Dollar finds support ahead of jobs data

Published: 22 Oct at 9 AM Tags: Euro, Dollar,

The US dollar has found some support ahead of jobs data due to be released later. The figures for September have been delayed because of the government shutdown in Washington, but positive news is likely to see the dollar climb away from a recent eight-month trough.

The government shutdown caused investors to worry about the recovery of the world’s largest economy and it is now unlikely that the Federal Reserve will announce a tapering of its bond-buying stimulus programme any time this year. Most analysts are expecting the jobless level in the US to be unchanged at 7.3 per cent.

The full extent of the impact of the US government problems on the country’s economy is still to become clear, but any positive data is likely to bring back some confidence in the greenback.

Elsewhere the euro has dropped slightly to $1.3676 after hitting a peak last week of $1.3704, its highest level in more than eight months.

The Australian dollar is also down a tad to $0.9654 after hitting its highest level in more than four months. A number of other currencies are close to crucial chart levels as most traders remain cautious ahead of the latest job figures from the US.