Connect with us

Hi, what are you looking for?

Forex

Dollar hits three-month high ahead of U.S. jobs test By Reuters

Dollar edges higher after U.S. inflation data as traders await Fed meet By Reuters


© Reuters. FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

By Iain Withers

LONDON (Reuters) – The U.S. dollar hit a fresh three-month high versus other major currencies on Friday, as traders wagered strong U.S. labour data could lift it even further.

The is on track to gain nearly 1% this week, its fourth weekly rise in five weeks. It hit a high of 92.699 before losing some momentum, and was last broadly flat on the day at 92.582.

The greenback has strengthened broadly since the U.S. Federal Reserve surprised markets last month by signalling it could tighten policy earlier than expected to curb inflation.

The U.S. jobs report is due at 1230 GMT and is forecast to show a solid rise of 700,000, with traders braced for any surprises.

“The FX markets have certainly become more sensitive to incoming US economic data,” currency analysts at MUFG said in a note. “That suggests to us that positioning in FX could still be short US dollars which is resulting in this further extension of dollar strength.”

A higher number in the employment report could fuel concerns of tighter Fed policy, analysts said.

“The dollar has started July strongly; a U.S. non-farm payrolls meet or beat today would maintain that momentum,” DBS Bank strategist Philip Wee wrote in a note.

The dollar hit a fresh three-month high versus the euro ahead of the report, edging up a quarter of a percent on the day to $1.18205. It was broadly flat versus the yen and British pound.

“Many people are now arguing (over) whether the dollar has indeed bottomed, because at some point in 2023 the Fed is suggesting that it could be raising interest rates,” Paul Mackel, global head of FX research at HSBC said in an outlook call.

“Also there’s some nervousness whether the dollar’s going to start to behave in a more pro-cyclical manner, that is, if the data is stronger than expected in the U.S. that the dollar really gets more strength from that.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...