The U.S. dollar is on the way for its best week in two months on Friday as the U.S. currency continued to inch higher during the Asian trade session. Tensions are easing in the Middle East and sentiment is recovering.
The prospect of a full scale military conflict between Iran and the United States has waned since Wednesday. Both countries are pulling back from further military conflict after a U.S. drone strike killed a top Iranian general. Iran, yesterday, launched a number of missiles at U.S. bases in Iraq. No casualties were reported.
The dollar is edging higher against the Japanese yen. The headline USD/JPY currency exchange rate is up 1.3 percent so far for the week.
The dollar index, which measures the U.S, currency against six other Forex units, is up 0.6 percent today, as well.
The EUR/USD Forex market is trading steady at 1.1105 and the headline GBP/USD currency exchange rate is also flat at 1.3066.
Dollar Edges Higher as Tensions between Iran and the United States Ease
Yesterday, lawmakers voted to limit what military actions President Donald Trump could take against Iran. The vote was among party lines and highlighted the deep political divide.
Tehran has now said that they will cooperate with authorities over the crash of the Ukrainian airliner that killed 175 passengers and crew. Looks like a missile brought the plane down.
On the economic calendar for Friday at 8:15 am EST, the United States will release their NFP labor report. Canada also has key labor data on the calendar. Today, out of the Eurozone, France and Italy will release industrial production numbers.
The U.S. non-farm payroll report (NFP), however, will headline the calendar. The U.S. will also publish their unemployment rate, labor participation rate and hourly wages.
Analysts are expecting the U.S. economy to add 150K new jobs in December. The unemployment rate to remain steady at 3.5 percent. Finally, hourly wages are expected to tick higher for December.
Canadian labor data is expected, at the same time the NFP crosses the wires. The Canadian labor market is expected to rebound from November’s contraction of 71.2K to add 31.8K jobs in December. Their unemployment rate is also expected to inch lower.