Forex trading online: Promising job reports outweigh potential military action on dollar’s value

The U.S. dollar continues its steady climb in the Forex trading online market despite recent uncertainty in regards to U.S. military involvement in Syria – level of involvement and time frame. As Bart Wakabayashi, head of Forex at State Street Global Markets in Tokyo concluded, "it seems like the market is tentatively concluding that any military action may not last that long and its impact on the world economy will be limited.

The market is coming back to business as usual." There still must be something driving the U.S. dollar upwards even if the possible U.S. intervention into Syria is not putting a drag on the dollar.

Recent Forex trading online involving the U.S. dollar has mainly been affected by economic news (namely job reports) and the plans of the U.S. Federal Reserve to ease its bond purchasing program (when and by how much). From Reuters, September 5th 2013, the “U.S. private employers added 176,000 jobs in August, nearly matching economists' expectations for the month, a report by a payrolls processor showed on Thursday.” In Forex trading online, it is not just whether any economic news is positive or negative; but also on how well it matches expectations will determine the movement of a currencies value. "After all the major central banks are done today the FX shift would firmly return to the U.S. dollar on Friday. There is a lot hinged on the non-farm payrolls data," said Neil Jones, head of hedge fund FX sales at Mizuho Corporate Bank. 

This is because, as Reuters mentions, “the main focus… is on the U.S. nonfarm payrolls report… if that data confirms a continued recovery in the job market, it will be seen as sufficient for the Federal Reserve… to start reducing its bond-buying program.” 

What would be a sufficient number to show a job market recovery in this latest report? 

For any currency trader with Forex trading online it may be different; however, Neil Jones predicts that "if the number is around 200,000 the dollar will go higher."