Dollar edges higher ahead of week’s event risk

The Dollar edged higher on Wednesday morning in Europe, with investors remaining cautious ahead of event risks for the week. This includes a U.K. central bank meeting and the release of key U.S. unemployment data scheduled for Thursday.

The U.S. Dollar Index rose by 0.2% to 99.925 at 2:40 AM ET (0640 GMT).

The British Pound Sterling slipped to $1.2432, ahead of the Bank of England’s meeting that will take place on Thursday. While the central bank is unlikely to announce any new stimulus, investors are expecting a possible increase in the QE program in the future.  

The Euro also fell against the dollar by 0.2% to a week low of $1.0817.

The Japanese Yen dropped by 0.2% to ¥106.39 per Dollar.

Many also await the release of ADP’s private sector employment report for April on Thursday, a day ahead of the non-farm payrolls report. The report will cover the month’s expenses on lockdown restrictions. Furthermore, it may put a new perspective on the rise of U.S. unemployment last month and may even help determine whether the government’s support measures had any positive effects on layoffs.

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