Forex: Greenback follows equities higher on May day

<!--TITOL:

Forex: Greenback follows equities higher on May day

FITITOL--> FXstreet.com (Barcelona) - May has begun displaying an unusual pattern as the US Dollar gained acros the board, being immune to a rally seen in US stock indexes after a rosier than expected ISM manufacturing report for April, which jumped to its highest in 10 months, boosted by an impressive improvement in the employment sub-index.

While the EUR/USD ended virtually unchanged at 1.3240, thrid consecutive day the spot struggles to make any progress, the Dow Jones Industrial Average climbed to its highest level in over five years before paring some gains. The US Dollar maintained its own rally towards the end of the session vs peers.

Christopher Vecchio, Currency Analyst at DailyFX, wonders if the latest price action could mean temporary end of QE3 hopes implied by market participants since last Wednesday’s FOMC meeting: "Friday’s nonfarm payroll report will be the ultimate tell. If the jobs market posted substantial gains in April, the USDJPY stands to be the bigg est beneficiary, just as the USDJPY was hammered following March’s exceptionally disappointing NFP release” the analyst noted.