October 06, 2006

U.S. Dollar Up on Jobs Data

Things looking better in forex trading across the pond

The U.S. dollar is receiving a boost in forex trading in the form of unexpectedly good jobs data. Spread bets and contracts for differences favouring the dollar, especially against the euro and the yen, should be profitable for the short term. Carefully look at the economic data coming out across the pond to determine the best course of action for your forex currency pairs spread betting strategy. Bloomberg reports on the gains posted by the U.S. dollar in forex trading:

Evidence of quicker economic growth may damp speculation the Federal Reserve will cut interest rates early next year. The dollar extended gains versus the yen, which had slumped earlier after a Japanese official said North Korea may test a nuclear weapon in coming days.

``The labor market is a bit stronger than the market expected,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``The report may push the market to question that it may be too early to discount a rate cut. The dollar gets some support here.''