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The dollar rose to a three-week high on Thursday, bolstered by stronger-than-expected U.S. jobs data that suggested an improving labor market and reinforced signs that the world's largest economy was on its way to recovery from the COVID-19 pandemic.
FILE PHOTO: A picture illustration shows U.S. 100-dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File Photo
04 Jun 2021 03:25AM
NEW YORK: The dollar rose to a three-week high on Thursday, bolstered by stronger-than-expected U.S. jobs data that suggested an improving labor market and reinforced signs that the world's largest economy was on its way to recovery from the COVID-19 pandemic.
The greenback, which was already on solid footing ahead of reports on jobless claims and private payrolls, climbed to three-week peaks against the euro and two-month highs versus the yen.
U.S. private payrolls increased by 978,000 jobs in May, the ADP National Employment Report showed, the biggest increase since June 2020. Economists polled by Reuters had forecast private payrolls would increase by 650,000 jobs.
At the same time, U.S. initial jobless claims dropped below 400,000 last week for the first time since the pandemic started more than a year ago.
"You have to give the U.S. dollar merit because the economy behind it seems to be coming out of the pandemic mode and now indicators are giving us signs of clear momentum," said Juan Perez, FX strategist and trader at Tempus Inc in Washington.
Traders also awaited U.S. nonfarm payrolls report for May, due on Friday, which could set the tone at the Federal Reserve meeting this month. The Wall Street economists' consensus forecast for U.S. non-farm payrolls was for 650,000 new U.S. jobs last month.
"The state of the U.S. labor market remains more uncertain and volatile than usual as it emerges from the unprecedented disruption of the COVID pandemic," Matt Weller, global head of market research at FOREX.com and City Index, said in a research note.
"The month-to-month fluctuations in this report are notoriously difficult to predict, so we wouldn't put too much stock into any forecasts," Weller added.
In afternoon trading, the dollar index, which measures the greenback against a basket of six currencies, rose 0.7per cent to 90.5040. It hit a three-week high of 90.554 and found strong support around the 89.946 mark in recent sessions after falling 2per cent in April and a further 1.6per cent in May.
The euro, meanwhile, fell 0.7per cent against the dollar to US$1.2123 after earlier sliding to three-week low of US$1.2118.
Against the yen, the dollar gained 0.6per cent to 110.245 yen. Earlier, the greenback advanced to two-month highs of 110.315 yen.
The Fed is also starting to unwind some of its asset purchases, which some analysts said is a likely precursor to the central bank eventually tapering its quantitative easing.
On Thursday, the New York Fed said it would start to gradually sell its portfolio of exchange-traded funds that invest in corporate bonds on June 7, the first step in unwinding corporate bond holdings acquired during the pandemic.
In other currency news, Russia announced it would completely remove U.S. dollar assets from its National Wealth Fund (NWF), while increasing the share of the euro, Chinese yuan and gold, according to Finance Minister Anton Siluanov on Thursday. The changes are expected within a month.
The move did not have any immediate impact on currencies.
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Currency bid prices at 2:57 PM (1857 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.5020 89.9200 +0.66per cent 0.579per cent +90.5540 +89.8850
Euro/Dollar US$1.2126 US$1.2210 -0.69per cent -0.75per cent +US$1.2214 +US$1.2118
Dollar/Yen 110.2850 109.5750 +0.65per cent +6.74per cent +110.3100 +109.5650
Euro/Yen 133.73 133.77 -0.03per cent +5.37per cent +133.9100 +133.6300
Dollar/Swiss 0.9042 0.8981 +0.70per cent +2.23per cent +0.9052 +0.8980
Sterling/Dollar US$1.4098 US$1.4169 -0.49per cent +3.20per cent +US$1.4202 +US$1.4085
Dollar/Canadian 1.2107 1.2035 +0.59per cent -4.93per cent +1.2120 +1.2031
Aussie/Dollar US$0.7652 US$0.7752 -1.29per cent -0.53per cent +US$0.7754 +US$0.7646
Euro/Swiss 1.0962 1.0962 +0.00per cent +1.43per cent +1.0978 +1.0958
Euro/Sterling 0.8599 0.8617 -0.21per cent -3.78per cent +0.8621 +0.8586
NZ US$0.7131 US$0.7232 -1.37per cent -0.67per cent +US$0.7241 +US$0.7125
Dollar/Dollar
Dollar/Norway 8.3805 8.3085 +0.89per cent -2.38per cent +8.3915 +8.2905
Euro/Norway 10.1647 10.1225 +0.42per cent -2.89per cent +10.1800 +10.1230
Dollar/Sweden 8.3338 8.2646 +0.07per cent +1.68per cent +8.3397 +8.2622
Euro/Sweden 10.1043 10.0970 +0.07per cent +0.28per cent +10.1182 +10.0884
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by Kirsten Donovan, Will Dunham, David Holmes and Jonathan Oatis)
Source: Reuters
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Dollar climbs to three-week peak in wake of strong US data
The dollar rose to a three-week high on Thursday, bolstered by stronger-than-expected U.S. jobs data that suggested an improving labor market and reinforced signs that the world's largest economy was on its way to recovery from the COVID-19 pandemic.
FILE PHOTO: A picture illustration shows U.S. 100-dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File Photo
04 Jun 2021 03:25AM
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NEW YORK: The dollar rose to a three-week high on Thursday, bolstered by stronger-than-expected U.S. jobs data that suggested an improving labor market and reinforced signs that the world's largest economy was on its way to recovery from the COVID-19 pandemic.
The greenback, which was already on solid footing ahead of reports on jobless claims and private payrolls, climbed to three-week peaks against the euro and two-month highs versus the yen.
U.S. private payrolls increased by 978,000 jobs in May, the ADP National Employment Report showed, the biggest increase since June 2020. Economists polled by Reuters had forecast private payrolls would increase by 650,000 jobs.
At the same time, U.S. initial jobless claims dropped below 400,000 last week for the first time since the pandemic started more than a year ago.
"You have to give the U.S. dollar merit because the economy behind it seems to be coming out of the pandemic mode and now indicators are giving us signs of clear momentum," said Juan Perez, FX strategist and trader at Tempus Inc in Washington.
Traders also awaited U.S. nonfarm payrolls report for May, due on Friday, which could set the tone at the Federal Reserve meeting this month. The Wall Street economists' consensus forecast for U.S. non-farm payrolls was for 650,000 new U.S. jobs last month.
"The state of the U.S. labor market remains more uncertain and volatile than usual as it emerges from the unprecedented disruption of the COVID pandemic," Matt Weller, global head of market research at FOREX.com and City Index, said in a research note.
"The month-to-month fluctuations in this report are notoriously difficult to predict, so we wouldn't put too much stock into any forecasts," Weller added.
In afternoon trading, the dollar index, which measures the greenback against a basket of six currencies, rose 0.7per cent to 90.5040. It hit a three-week high of 90.554 and found strong support around the 89.946 mark in recent sessions after falling 2per cent in April and a further 1.6per cent in May.
The euro, meanwhile, fell 0.7per cent against the dollar to US$1.2123 after earlier sliding to three-week low of US$1.2118.
Against the yen, the dollar gained 0.6per cent to 110.245 yen. Earlier, the greenback advanced to two-month highs of 110.315 yen.
The Fed is also starting to unwind some of its asset purchases, which some analysts said is a likely precursor to the central bank eventually tapering its quantitative easing.
On Thursday, the New York Fed said it would start to gradually sell its portfolio of exchange-traded funds that invest in corporate bonds on June 7, the first step in unwinding corporate bond holdings acquired during the pandemic.
In other currency news, Russia announced it would completely remove U.S. dollar assets from its National Wealth Fund (NWF), while increasing the share of the euro, Chinese yuan and gold, according to Finance Minister Anton Siluanov on Thursday. The changes are expected within a month.
The move did not have any immediate impact on currencies.
========================================================
Currency bid prices at 2:57 PM (1857 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.5020 89.9200 +0.66per cent 0.579per cent +90.5540 +89.8850
Euro/Dollar US$1.2126 US$1.2210 -0.69per cent -0.75per cent +US$1.2214 +US$1.2118
Dollar/Yen 110.2850 109.5750 +0.65per cent +6.74per cent +110.3100 +109.5650
Euro/Yen 133.73 133.77 -0.03per cent +5.37per cent +133.9100 +133.6300
Dollar/Swiss 0.9042 0.8981 +0.70per cent +2.23per cent +0.9052 +0.8980
Sterling/Dollar US$1.4098 US$1.4169 -0.49per cent +3.20per cent +US$1.4202 +US$1.4085
Dollar/Canadian 1.2107 1.2035 +0.59per cent -4.93per cent +1.2120 +1.2031
Aussie/Dollar US$0.7652 US$0.7752 -1.29per cent -0.53per cent +US$0.7754 +US$0.7646
Euro/Swiss 1.0962 1.0962 +0.00per cent +1.43per cent +1.0978 +1.0958
Euro/Sterling 0.8599 0.8617 -0.21per cent -3.78per cent +0.8621 +0.8586
NZ US$0.7131 US$0.7232 -1.37per cent -0.67per cent +US$0.7241 +US$0.7125
Dollar/Dollar
Dollar/Norway 8.3805 8.3085 +0.89per cent -2.38per cent +8.3915 +8.2905
Euro/Norway 10.1647 10.1225 +0.42per cent -2.89per cent +10.1800 +10.1230
Dollar/Sweden 8.3338 8.2646 +0.07per cent +1.68per cent +8.3397 +8.2622
Euro/Sweden 10.1043 10.0970 +0.07per cent +0.28per cent +10.1182 +10.0884
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by Kirsten Donovan, Will Dunham, David Holmes and Jonathan Oatis)
Source: Reuters
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