US dollar softens as NFP report looms

11:47 2 November 2018
US dollar is trading lower in anticipation of the employment report for October. Its underperformance is a result of lowered risks regarding a US-China trade dispute following remarks offered by the US President Donald Trump. He has reportedly asked officials to draft terms of a potential trade agreement Trump and Xi might strike when they meet in Argentina later this month. Note that US wage growth is expected to have accelerated to 3.1% in annual terms mainly reflecting favourable statistical effects. If so, it would be the first rise above a 3% threshold since 2009. The euro is trading 0.33% higher against the dollar in less than two hours before the NFP report.

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