The dollar became very strong yesterday which was supported by the unexpectedly good statistics. Data on the number of applications for unemployment benefits turned out to be much better than forecasts, which is important in the advancement of data on the labor market for today. Thus, the number of primary applications decreased from 272,000 to 260,000 instead of 265,000. The number of repeated applications increased from 1,936,000 to 1,938,000 while they are expected to grow up to 1,950,000. The fact that the production orders increased by 1.2% still remains important.
Today, all attention will be focused only to the data on the labor market from the U.S., which could have a very negative impact on the dollar. According to forecasts, the unemployment rate should remain unchanged, and relatively, all attention will be on the accompanying data. However, it is expected that only 90,000 new jobs were created. Not only is this significantly smaller than the recorded 156,000 in the previous month, but it is also below the benchmark of the Federal Reserve which is 100,000. This will negatively affect the expectations of the growth of the refinancing rate, which grew only recently.
In case of the forecasts are confirmed, the EUR/USD pair will grow to 1.1755. In addition, the rates of growth in the hourly wages and the duration of the working week may remain unchanged.
The GBP/USD pair will increase towards the level of 1.3165.