Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dollar Up Despite Friday's Disappointing U.S. Jobs Data

Published 02/07/2021, 08:56 PM
Updated 02/07/2021, 09:00 PM
© Reuters.

© Reuters.

By Gina Lee

Investing.com – The dollar was up on Monday morning in Asia, even as investors digested disappointing U.S. jobs data that caused some investors to ease bets on a strong dollar.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.13% to 91.088 by 8:53 PM ET (1:53 AM GMT), but recorded a 0.6% loss from Friday.

The USD/JPY pair edged up 0.14% to 105.50, with the JPY pulling back from a three-month high reached against the dollar on Friday.

The AUD/USD pair inched down 0.07% to 0.7672, while the NZD/USD pair inched up 0.04% to 0.7200.

The USD/CNY pair edged down 0.12% to 6.4588 and the GBP/USD pair inched down 0.03% to 1.3729, near an almost three-year high.

Friday’s U.S. jobs report for January showed that fewer jobs were created in the economy than expected. Non-farm payrolls were at 49,000, better than the previous month’s contraction of 227,000, but was below the 50,000 reading in forecasts prepared by Investing.com. The unemployment rate was at 6.3%, lower than the forecast 6.7% and December’s 6.7% growth.

“Soft non-farm payrolls have really pulled the ladder out from under the dollar …. now the markets are questioning whether the dollar can rise any further. A lot depends on COVID-19, but we also need to know when U.S. fiscal stimulus will pass,” Daiwa Securities foreign exchange strategist Yukio Ishizuki told Reuters.

Investors continue to reduce their short positions in the greenback, with some saying that better U.S. economic data and continuing signs of progress in the battle against COVID-19 are needed ahead of further dollar gains.

Net bearish bets on the U.S. currency declined to $29.95 billion for the week ended Feb. 2, compared with a net short position of $33.81 billion for the previous week, according to Reuters calculations using U.S. Commodity Futures Trading Commission data.

The U.S. will also hand down its federal budget later in the week. More U.S. data, including the consumer price index, will also be released as the week goes on.

Investors also await data from across the Atlantic, with December’s German industrial production figures due to be released later in the day.

Latest comments

sir
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.