US dollar index rebounds and ends higher ahead of NFP

The US dollar strengthened on Thursday during the American session and recovered ground. The worst performer in the currency market was the pound, that tumbled after Bank of England’s decision and the release of the Quarterly Inflation report. 

Attention lies now on Friday’s US Employment report. Expectations for a strong number rose after the positive surprise of Wednesday’s ADP report. Yesterday, the US dollar lost momentum after the Federal Reserve statement showed no signals of an imminent rate hike in March. 

NFP Forecast: Will strong payrolls & wage growth help US dollar regain poise?

The US Dollar index, which gauges the US dollar against its main competitors, bottomed today at 99.20, the lowest since mid-November. From the lows, it bounced to the upside, and rose constantly during the American session. Near the end of the day, it was holding at daily highs, at 99.80, up 0.05%. 

Gold prices reached monthly highs above $1220/oz but then the pulled back and equity prices on Wall Street were falling modestly. The Dow Jones was down 0.13% at 19,864 and the Nasdaq was falling 0.21%. Bond yields were little changed, with the US 10-year at 2.47% (same level it closed yesterday).