Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up Near Two Week High, Employment Data Could Hold Next Fed Clue

ForexMay 06, 2021 12:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Thursday morning in Asia, remaining just below a two-week high ahead of a U.S. jobs report that could provide further clues on when the U.S. Federal Reserve will start scaling back its unprecedented stimulus measures.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.02% to 91.308 by 12:33 AM ET (4:33 AM GMT).

The USD/JPY pair edged up 0.16% to 109.36.

The AUD/USD pair was down 0.25% to 0.7728 and the NZD/USD pair inched down 0.07% to 0.7208.

The USD/CNY pair edged up 0.11% to 6.4799.

The GBP/USD pair inched down 0.03% to 1.3899 ahead of the Bank of England handing down its policy decision later in the day. Some investors expect the central bank to begin tapering its bond-buying program on the back of a COVID-19 vaccination-driven economic recovery in the U.K.

Recently released, largely positive U.S. economic data has boosted the greenback from a one-month low over the past week. However, investors continue to wonder whether a rise in inflation could force the Fed to change its monetary policy earlier than predicted.

"The dollar is likely to continue to respond to the debate about whether or not the Fed’s view that inflation will be transitory is correct," Rabobank strategist Jane Foley said in a note.

With several forecasters predicting a one-million-plus increase in non-farm payrolls forming part of the employment record, "the dollar may continue to find a good level of support in the near-term" with the currency strengthening to $1.19 per euro over a one-month horizon, she added.

The euro hit the psychologically important $1.20 mark earlier in the day after dropping to $1.1986 during the previous session for the first time since Apr. 19.

Fed Chairman Jerome Powell has so far argued that the labor market is well short of where it needs to be in order to begin talking about tapering asset purchases, with the central bank not looking to raise its benchmark Fed funds rate through 2023.

Powell’s message was corroborated by other Fed officials, three of whom spoke on Wednesday alone. One of them, Boston Fed President Eric Rosengren, said although inflation will be temporarily distorted in spring 2021 as the U.S. economy works through imbalances caused by COVID-19, it will be short-lived and should not lead to a pullback in monetary policy.

The Fed’s comments follow U.S. Treasury Secretary Janet Yellen’s comment on Tuesday that rate hikes could be necessary to stop the economy from overheating, although she issued a clarification later that day.

"Despite constant reassurances from Yellen and an array of Fed officials that the coming increase in inflation will prove 'transitory'... markets are evidently a bit more worried," National Australia Bank (OTC:NABZY) strategist Rodrigo Catril said in a note.

In cryptocurrencies, ether traded at $3,462.62 after hitting a record $3,559.97 on Tuesday, while Bitcoin hovered near the $56,755-mark.

Dollar Up Near Two Week High, Employment Data Could Hold Next Fed Clue
 

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.
Comments (1)
josiah samuel
josiah samuel May 06, 2021 8:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
by what time will GBP market bullish tomorrow
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email