Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Dollar Up, But Moves Small as Focus Remains on Fed Tapering Timeline

Forex Sep 09, 2021 10:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
GBP/USD
+1.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
+0.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
-0.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
-0.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
-1.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MKC
-2.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – The dollar was up on Friday morning in Asia, rebounding from a selloff triggered by the latest U.S. jobs report. However, investors continue to bet on when the U.S. Federal Reserve will begin asset tapering.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.05% to 92.530 by 10:53 PM ET (2:53 AM GMT).

The USD/JPY pair inched up 0.07% to 109.78.

The AUD/USD pair inched up 0.08% to 0.7372 and the NZD/USD pair edged up 0.18% to 0.7114.

The USD/CNY pair inched up 0.01% to 6.4523 and the GBP/USD pair inched up 0.08% to 1.3846.

The dollar sank to its lowest level since Aug. 3 during the previous week after the release of the jobs report for August. The report, which was much weaker than expected, reduced expectations of the Fed beginning asset tapering.

However, the Fed could still be on course to begin the process later in 2021, with Governor Michelle Bowman suggesting overnight that the report would not necessarily deter the central bank.

Meanwhile, data released on Thursday showed that Americans filed 310,000 initial jobless claims throughout the week, the lowest number in almost 18 months.

"The Fed looks set to taper later in 2021, underscored by recent comments this week," TD Securities global head of FX strategy Mark McCormick (NYSE:MKC) said in a note.

However, even with the trend toward monetary policy becoming less accommodative globally, financial conditions remain ultra-loose, which "binds how much room the dollar has to run and favors selling rallies," the note added.

Across the Atlantic, the euro was flat at $1.18235 and set for a 0.47% decline to end the week. However, ECB’s policy decision, handed down on Thursday, did give the single currency a small boost.

Although the central bank kept its interest rate unchanged at 0%, it indicated it would slow the pace of purchases under its Pandemic Emergency Purchase Program in the fourth quarter of 2021.

But with ECB President Christine Lagarde assuring markets that “the lady isn’t tapering” and the decision well within expectations, some investors were not surprised.

"It was a big event for economists, not so much for traders. The volatility was not there," Pepperstone head of research Chris Weston said in a note.

Euro support at $1.18 "needs to give way for shorts to get any real traction here," the note added.

Dollar Up, But Moves Small as Focus Remains on Fed Tapering Timeline
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email