🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Forex - Dollar Steady as Investors Mull Trade Tensions, Mid-Terms

Published 11/05/2018, 03:55 AM
© Reuters.
EUR/USD
-
USD/JPY
-
DX
-

Investing.com - The dollar was holding steady against a currency basket on Monday as Friday’s strong U.S. jobs report underpinned expectations for higher interest rates and investors mulled heightened trade tensions and geopolitical risks.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 96.28 by 03:52 AM ET (08:52 AM GMT).

The dollar remained supported after the Labor Department reported that U.S. job growth rebounded sharply in October and wage growth accelerated at the fastest pace in more than nine years.

The robust figures indicated that the labor market is continuing to tighten, underlining the case for the Federal Reserve to hike interest rates again this year and beyond.

The Fed will begin its two day meeting on Wednesday, with markets anticipating no change to interest rates ahead of a widely expected rate hike in December.

The dollar was holding steady against the yen, with USD/JPY changing hands at 113.18.

Trade tensions between the U.S. and China remained in focus after weak Chinese service sector data overnight added to fears over a slowdown in the world’s second largest economy.

Hopes for an imminent trade agreement between Washington and Beijing have faded after an economic advisor to U.S. President Donald Trump said late last week that there were no such plans in the works.

Investors were also looking ahead to the U.S. mid-term elections on Tuesday. Voters will decide key races in Congress and state governments and the results could influence the Trump administrations ability to pass additional tax and trade reforms.

The euro was little changed against the dollar, with EUR/USD at 1.1392.

Sterling hit two week highs of 1.3041 overnight, before pulling back to 1.3008 on optimism over a Brexit deal and indications from the Bank of England that it might need to raise interest rates more quickly in the event of a smooth exit from the EU.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.