David Song

The worldrsquo;s largest economy is expected to add another 145K jobs in January, and the ongoing improvement in the labor market may prop up the U.S. dollar as it dampens speculation for additional monetary support.br/

The greenback continued to track lower on Wednesday, with the Dow Jones-FXCM U.S. Dollar Index tumbling to a fresh yearly low of 9,695, and the reserve currency may face additional headwinds over the next 24-hours of trading should Fed Chairman Ben Bernanke talk up speculation for another round of quantitative easing.
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Positive developments coming out of the euro-area propped up market sentiment on Wednesday, but the rise in risk-taking behavior may be short-lived as the heightening risk for contagion continues to dampen the outlook for the world economy.
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Manufacturing in the worldrsquo;s largest economy is expected to expand at a faster pace in January, and the rise in production may prop up the U.S. dollar as the development highlights an improved outlook for growth.br/

The greenback came under pressure on Tuesday, with the Dow Jones-FXCM U.S. Dollar Index slipping to a fresh monthly low of 9,723, but we should see the reserve currency regain its footing over the next 24-hours trading as the rise in risk-taking behavior tapers off.
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