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

Forex - Dollar Set to Snap 3-Day Losing Streak as Sterling Slides

Published 01/08/2019, 02:02 PM
Updated 01/08/2019, 02:02 PM
© Reuters.

© Reuters.

Investing.com - The dollar was on track to snap a three-day losing streak against its rivals Tuesday, shrugging off weak U.S. jobs data as sterling faltered ahead of a UK parliamentary debate on Brexit.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.24% to 95.46.

The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in November declined to about 6.9 million, missing expectations of 7.1 million.

The weaker job openings print did little to sway investor expectations that the U.S. labor market remains robust as data last week showed the economy created more jobs than expected in December.

The dollar was also supported by a fall in Treasury prices, which trade inversely to yields, even as analysts said U.S. government bond yields have likely peaked.

Goldman Sachs cut its year-end projection for the 10-year Treasury yields by 50 basis points to 3%, while Bank of America also trimmed its forecasts on the 10-year yield to 3%.

The pound, meanwhile, succumbed to Brexit uncertainty as traders seemingly took some profits off the table ahead of a debate in the UK parliament on Prime Minister Theresa May’s Brexit withdrawal agreement. The vote on the agreement is slated for Jan. 15.

GBP/USD fell 0.48% to $1.2717.

The EUR/USD lost 0.26% to $1.1445, with the latter coming under pressure as data showed German industrial output unexpectedly fell in November, raising concern the country may be heading for a technical recession in the fourth quarter of 2018 after contracting in the third.

USD/CAD fell 0.05% to C$1.3286 as oil prices continued their bullish start to year, with WTI futures up more than 2% ahead of API inventory data due later Tuesday.

USD/JPY fell 0.03% to Y108.67 owing to waning demand for safe-haven yen on the back of investor optimism that the latest round of U.S. and China trade talks could pave the way to a deal.

-- Reuters also contributed to this report.

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.