Dollar Surges before the Release of Key Economic Reports

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Dollar Surges before the Release of Key Economic ReportsThe dollar looks set to touch its highest level in nearly eight months versus the yen ahead of the scheduled release of a data that is forecasted to show U.S. employment numbers rose, boosting speculation the Federal Reserve will hike interest rates.

The U.S. currency rose 0.1 percent to trade at 104.87 yen at 10:55 a.m. in London after surging 105.31 yen on Wednesday, its strongest level since Jan. 10. The dollar remained slightly unchanged at $1.3148 per euro after advancing to $1.3110 on September 2, its highest level since Sept. 6, 2013. The euro held steady at 137.88 yen.

“The U.S. economy is looking better, and global confidence in U.S. assets both as a haven and an investment remains healthy,” Neil Jones, a London-based head of hedge-fund sales at Mizuho Bank Ltd., told Bloomberg News. “The market is looking for the ECB and BOJ to raise stimulus down the line, and the Fed to reduce it. The foreign-exchange market is acting accordingly.”

Economists forecast that a report due to be released today by ADP Research Institute will show that U.S. payrolls rose in August. A Bloomberg survey of economists also projects that growth in U.S. service industries grew the most since 2005 last month, before the Institute for Supply Management releases its report today.

Meanwhile, the Swedish krona rose after the country’s central bank retained its benchmark interest rates, expressing confidence that its 0.5 point reduction in July is sufficient to boost inflation. The Riksbank retained its repurchase rate at 0.25 percent in line with analysts’ estimates. The krona rose 0.2 percent to 9.1904 per euro and advanced 0.2 percent to 6.9904 per dollar.To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com