The pound made fleeting gains on Thursday, driven by hopes for a solid economic rebound in the UK this year.
With unemployment looking set to rise further before the end of the year, given the absence of any further fiscal stimulus measures, this cast a shadow over the economic outlook.
Although October’s durable goods orders figure showed stronger-than-anticipated gains on the month, USD exchange rates failed to gain any significant boost.
As market optimism over Covid-19 vaccine prospects persisted, this limited safe-haven demand and left the US dollar vulnerable to selling pressure.
Worries over the health of the US labour market could pick up further on Friday with the release of November’s non-farm payrolls report.
With forecasts pointing towards a smaller headline payrolls figure, the mood towards the US dollar could easily sour again as markets brace against the possibility of a sustained labour market slowdown.
At the same time, the US dollar sell-off may continue on the back of risk-on trade as the Pfizer/BioNTech coronavirus vaccine looks to gain approval in the US and Europe.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)