SINGAPORE – The US dollar wobbled
above major support levels on Thursday as traders expected a
batch of US economic data that could set the tone at the central level
bank meetings later this month.
Investors have bet that the dollar will fall as the world
recovering from the COVID-19 pandemic, but lately they have grown
nervous about whether a surprisingly strong US economic rebound
poses a threat to a key assumption that interest rates stay low.
The mood has prevented speculators from adding much short
positions in recent weeks. That has slowed down what had a
a month ago it looked like a relentless downtrend and has pushed
traders who follow trends in a wait-and-see mode.
Against the euro, the dollar is trading at $ 1.2209
after relaxing a little rally on Wednesday. The dollar lost 1.7%
on the euro in May, but did not fall beyond strong support in
$ 1.2266. It was stable at 109.64 yen.
In Asia, surprising gains in the eastern Chinese yuan
week had also sparked speculation about changes in the Chinese
Policymakers’ stance on the currency, although slightly relaxed
to 6,3807 in the first offshore operations on Thursday.
The dollar index, which measures the dollar
against a basket of six major currencies, also held at 89,919
where it seems to have found strong support in recent weeks.
The U.S. private payroll figures due later on Thursday are as follows.
the latest issues to offer clues to the state of the economy and a
possible reading on broader nonfarm payroll data due Friday.
Appearances of a Handful of Federal Reserve Officials
be watched closely for signs of sensitivity to the first
strength of the rally ahead of its next meeting in mid-June.
“Major pairs (are) still stuck within ranges,” he said.
strategists at OCBC Bank of Singapore in a note. They added,
However, those performance differentials seem to move in the
the favor of the dollar and that the tone of politicians is subtly changing.
Comments from Fed Governor Lael Brainard this week noting
risks to both sides of the Fed’s targets offered “another signal
that the Fed is slowly moving away from its overly moderate
stance, “said bank strategists Terence Wu and Frances
“(We hold) the view that the Fed’s expectations should
gradually built from here, unless this key piece of information is lost
The Fed’s late night announcement of a move to relax
corporate bond holdings purchased through an emergency facility
Last year offers another sign that pandemic measures are reaching a
That leaves traders to focus on Friday’s labor data, which
after a big mistake in April, when the monthly recruitment of 266,000
confusing expectations of 1 million, do the estimates for May range from
between 400,000 and 1 million, with a consensus of around 664,000.
“Given last month’s disappointing report, the risk is the
The results offer another surprise to the downside and are supported by
dollar, ”said Carol Kong, an analyst at the Commonwealth Bank of Australia.
The European Central Bank also meets next week and investors
focus on whether policymakers report a slowdown in their
bond purchase program.
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Currency offer prices at 128 GMT
Description RIC Last US Closing Percentage Change YTD Percentage High Bid Low Bid
Euro / Dollar $ 1.2210 $ 1.2210 + 0.00% -0.07% +1.2214 +1.2208
Dollar / Yen 109.6400 109.5550 + 0.07% + 6.14% +109.6850 +109.6100
Euro / yen
Dollar / Swiss 0.8981 0.8981 + 0.01% + 1.53% +0.8983 +0.8980
Pound sterling / Dollar 1.4172 1.4169 + 0.03% + 3.74% +1.4179 +1.4169
Dollar / Canadian 1.2035 1.2035 + 0.00% -5.49% +1.2041 +1.2031
Aussie / dollar 0.7749 0.7752 -0.02% + 0.75% +0.7754 +0.7744
New Zealand 0.7237 0.7232 + 0.07% + 0.78% +0.7241 +0.7233
Dollar / dollar
All the places
Spots of europe
BOJ Tokyo Forex Market Information
(Reporting by Tom Westbrook
Edited by Shri Navaratnam)