The greenback made gains virtually across the board in overnight trading, as analysts are predicting positive US news to benefit the dollar throughout the week. In addition to riskier currencies like the euro and UK pound, the dollar has also been able to move up against safe-havens, like the yen and Swiss Franc. The USD/CHF pair is currently up almost 50 pips since markets opened for the week, and currently stands around the 0.9365 level.
Today, the sole piece of significant news scheduled to be released is the US ISM Manufacturing PMI. Most analysts are forecasting a result of around 57.1 for the PMI, which if true, would represent a significant increase over last month. This would be yet another sign that the US is on its way toward economic recovery, and may help the dollar maintain its bullish trend.
Turning to the rest of the week, a batch of significant US data is set to be released, including the all-important Non-Farm Employment Change figure on Friday. In addition, traders will want to pay attention to Wednesday’s ADP Non-Farm Employment Change figure, as well as the official Unemployment Rate, also set to be released on Friday. Early predictions are calling for positive data on all fronts, including a possible lowering of the US unemployment rate to 9.7%. If true, investor confidence in the US economy is likely to grow, and may cause the dollar to spike.
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