Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar edges higher as investors await U.S. payrolls

EconomyJun 28, 2021 04:02PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) -The U.S. dollar drifted higher on Monday in generally thin trading, with many investors on the sidelines ahead of Friday's U.S. nonfarm payrolls report, which could determine the path of the Federal Reserve's monetary policy.

The U.S. Labor Department is expected to report a gain of 690,000 jobs in June, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month, according to a Reuters poll of economists.

The dollar has been on an upside trajectory since the outcome of the U.S. central bank's policy meeting earlier this month, with a majority of Fed policymakers pencilling in at least two quarter-percentage-point interest rate increases by the end of 2023.

"The potential for an upside surprise (in the U.S. jobs data) that pulls monetary tapering and tightening expectations forward is looming ever bigger for investors," said Karl Schamotta, chief market strategist at Cambridge Global Payments (NYSE:GPN) in Toronto.

"A number significantly above the 700,000 mark could really get the dollar freight train running, and no one wants to be tied to the tracks if that happens," he added.

Jane Foley, senior FX strategist at Rabobank in London, said, however, that another weak U.S. employment report for June could fail to diminish talk of inflation risks in the world's largest economy as the market now understands that labor supply has been containing the jobs growth recovery.

"This could mean that the U.S. dollar recovers swiftly on any post-payrolls sell-off, and that on a risk-reward basis it may not pay to be short U.S. dollars into the (data's) release," she added.

Softer-than-expected inflation data last week did little to ease concerns about the Fed dialling down its monetary stimulus, as investors pared back bearish dollar bets.

Speculators decreased their net short dollar positions in the latest week, according to U.S. Commodity Futures Trading Commission data.

Francesco Pesole, FX strategist at ING, said in a research note that there has been "fierce re-pricing" of the Fed's rate expectations, which has lifted the dollar across the board.

He added that the euro and sterling, which saw a reduction in net long positions, have carried the brunt of the Fed's rate outlook.

In afternoon trading, the dollar index was up 0.1% at 91.897.

Investors are also looking at U.S. consumer confidence data on Tuesday as well as the Institute for Supply Management's manufacturing index on Thursday for clues as to where interest rates are headed.

The euro was down 0.1% at $1.1923, while euro-dollar implied volatility gauges with a one-year maturity were close to their lowest since March 2020.

Against the yen, the dollar was down 0.2% at 110.57 .

The Australian dollar, seen as a liquid proxy for risk appetite, fell 0.35% on the day to US$0.7565, while the New Zealand dollar slid 0.4% to US$0.7042.

In cryptocurrencies, bitcoin was down 0.9% at $34,388. It showed little reaction to Britain's financial regulator saying that Binance, one of the world's largest crypto exchanges, cannot conduct any regulated activity, and issuing a warning to consumers about the platform.


Currency bid prices at 3:27PM (1927 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index 91.8830 91.7670 +0.13% 2.114% +92.0170 +91.6990

Euro/Dollar $1.1924 $1.1937 -0.12% -2.42% +$1.1944 +$1.1903

Dollar/Yen 110.5750 110.7900 -0.19% +7.02% +110.9750 +110.5000

Euro/Yen 131.85 132.23 -0.29% +3.88% +132.3400 +131.7900

Dollar/Swiss 0.9196 0.9169 +0.32% +3.97% +0.9214 +0.9170

Sterling/Dollar $1.3877 $1.3870 +0.06% +1.58% +$1.3939 +$1.3875

Dollar/Canadian 1.2342 1.2282 +0.50% -3.06% +1.2347 +1.2290

Aussie/Dollar $0.7566 $0.7589 -0.32% -1.66% +$0.7601 +$0.7554

Euro/Swiss 1.0966 1.0945 +0.19% +1.47% +1.0969 +1.0946

Euro/Sterling 0.8591 0.8599 -0.09% -3.87% +0.8602 +0.8567

NZ $0.7042 $0.7070 -0.38% -1.92% +$0.7086 +$0.7033


Dollar/Norway 8.5225 8.4910 +0.48% -0.64% +8.5490 +8.4870

Euro/Norway 10.1625 10.1323 +0.30% -2.91% +10.1803 +10.1345

Dollar/Sweden 8.5119 8.4879 +0.15% +3.85% +8.5199 +8.4621

Euro/Sweden 10.1510 10.1363 +0.15% +0.74% +10.1607 +10.1030

Dollar edges higher as investors await U.S. payrolls

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Sign up with Email