Connect with us

News

Dollar Stays Bullish on Resilient U.S. Jobs Market

Avatar of Arsi Mughal

Published

on

Dollar Stays Bullish on Resilient U.S. Jobs Market

(CTN News) – After U.S. economic statistics showed a still-tight labor market that might maintain the Federal Reserve on its aggressive rate rise path, the dollar stayed close to an almost one-month high on Friday.

According to figures released on Thursday, the number of Americans submitting new applications for unemployment benefits fell to a three-month low last week, while the number of layoffs decreased by 43%.

Separate data showed that private employment rose by 235,000 jobs in the last month, greatly above forecasts of a 150,000-job growth.

The dollar held near an almost one-month high on Friday

The U.S. dollar index increased 0.09% to 105.21 as measured against a basket of currencies, after a 0.9% increase on Thursday to a nearly one-month high of 105.27.

The index was expected to post its biggest weekly advance since September, at more than 1.6%.

According to Khoon Goh, head of Asia research at ANZ, “all the anecdotes about job losses from the tech sector have yet to be reflected in the overall employment data, suggesting that while there is weakness in some pockets…there is still strong demand for workers from the other parts of the economy.”

After being blasted to multi-week lows by the soaring greenback in the previous session, most major currencies were still in the red on Friday.

Sterling recently moved up 0.1% to $1.1920 after Thursday’s decline to a six-week low of $1.1873.

The euro increased by 0.02% to $1.0522 in the previous session after falling by 0.8% to a three-week low of $1.0515.

The dollar increased against the Japanese yen by 0.36% to 133.88 yen, not far from its one-week high of 134.045 yen reached on Thursday.

Markets are now focused on the eagerly anticipated nonfarm payrolls data that is out later on Friday; according to experts surveyed by Reuters, the U.S. economy gained 200,000 jobs in December.

Goh stated, “We could be in for a pleasant surprise.” “This will maintain the Fed’s steadfast commitment to raising rates.”

The euro zone’s flash inflation data for December will also be released on Friday. An annual inflation rate of 9.7% is anticipated.

Data from Germany, France, and Spain have already shown a slowing in inflation during the last month, raising the possibility that inflation across the eurozone may be lower than anticipated.

Ray Attrill, head of FX strategy at National Australia Bank, said, “the low inflation data, all the shocks that we’re receiving, looks to be weighing on the euro.”

However, looking at it from the perspective of terms of trade, the recent decline in oil and gas prices that we have seen is very favorable for the prospects of economic growth in the eurozone.

Therefore, I would anticipate that the euro would receive more support from that than it has so far.

Aside from that, the Australian dollar was last 0.1% higher at $0.6759, down from 1.3% the previous session and much of the gains it had achieved earlier in the week on the announcement that China has loosened its limits on Australian coal imports.

Following a 1% decline on Thursday, the kiwi increased by 0.24% to $0.6238 and was on pace to post its biggest weekly loss since September of close to 2%.

Related CTN News:

Gold Extends Gains As Dollar Dips After Jobless Claims Data

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies