Forex Markets Drop US Dollar Ahead of Nonfarm Payrolls Report. The GBP/USD pair surged to a three-month high of $1.2820 on Tuesday before easing lower on Wednesday. Forex traders are diversifying away from the US dollar, favoring alternative currencies like the British pound. The pound’s recent strength breached a technical pattern known as a “Double Top,” with analysts now watching for a candle to close above the key level of $1.2820.
A significant economic event looms, set to inject fresh volatility into the pound-dollar pair. On Friday, the US will release its nonfarm payrolls report, detailing the number of jobs added in May. Analysts expect 180,000 new hires, up from April’s 175,000. A figure significantly higher or lower than expectations could rattle forex markets as traders adjust their positions.
In anticipation of this report, the US dollar has retreated across the board. The EUR/USD pair reached a near three-month high of $1.0915, while the USD/JPY dropped below 155.00 for the first time in three weeks. The upcoming ADP nonfarm employment change report, which reflects private sector hiring, is expected to provide further clues ahead of Friday’s nonfarm payrolls data.
These developments underscore the sensitivity of forex markets to US economic indicators, with traders closely monitoring job data for signs of economic strength or weakness. The lead-up to the nonfarm payrolls report is likely to see continued volatility as markets react to incoming data. Forex Markets Drop US Dollar Ahead of Nonfarm Payrolls Report.
