AFP, New York :
The dollar treaded water against other major currencies Thursday as foreign exchange traders awaited the next day’s US jobs report for September.
Analysts expect the jobs report Friday will show the US economy added 205,000 jobs in September and the unemployment rate was unchanged at 5.1 percent, a seven-year low.
A report that meets or exceeds these expectations and includes evidence of solid wage growth would boost the dollar in the anticipation that the US Federal Reserve will soon lift interest rates, analysts said.
Meeting these conditions would mean, “The light for raising interest rates will flash green,” said Kathy Lien, managing director at BK Asset Management.
“However if payrolls fall short or average hourly earnings growth slows, the Fed’s decision becomes tougher and the dollar will suffer as a result,” she said.
The dollar treaded water against other major currencies Thursday as foreign exchange traders awaited the next day’s US jobs report for September.
Analysts expect the jobs report Friday will show the US economy added 205,000 jobs in September and the unemployment rate was unchanged at 5.1 percent, a seven-year low.
A report that meets or exceeds these expectations and includes evidence of solid wage growth would boost the dollar in the anticipation that the US Federal Reserve will soon lift interest rates, analysts said.
Meeting these conditions would mean, “The light for raising interest rates will flash green,” said Kathy Lien, managing director at BK Asset Management.
“However if payrolls fall short or average hourly earnings growth slows, the Fed’s decision becomes tougher and the dollar will suffer as a result,” she said.
