U.S. jobs data supports dollar as fragile risk-on mood holds
Against a basket of currencies, the dollar clambered off a one-week low to hold flat around 98.419.
The pound rose to its highest level against the dollar in more than a month and held most of those gains to trade around $1.2326 in Asian hours.
“Stronger than forecast employment, factory orders and productivity numbers contradicted the recent ‘slowing U.S. economy’ narrative,” said Michael McCarthy, chief strategist at brokerage CMC Markets in Sydney.
Traders now await the government’s monthly payrolls report due at 15:30 on Friday for the next snapshot on the labor market’s health.
“Investors are now hoping they can take this week’s positivity over the finishing line, so fingers crossed the August U.S. payroll report…doesn’t throw a damp towel on the proceedings,” said Stephen Innes, Asia Pacific Market Strategist at AxiTrader.
Will the Stats Spoil the Party? It’s Nonfarm Payrolls…
Later in the day, economic data out of the U.S will also provide direction. Nonfarm payroll and wage growth figures will be in focus later this afternoon.
Outside of the stats, it’s Friday and, while Trump traditionally shocks the markets, the news wires may well do the talking.
US Non-Farm Payrolls Preview: Against all odds
- August payrolls predicted to be at trend
- ADP hires were better than expected at 195,000
- Unemployment rate should continue near historic lows, wages steady
Non-farm payrolls are expected add 158,000 new workers in August after May’s gain of 164,000. The unemployment rate is predicted to be unchanged at 3.7%. Average hourly earnings will rise 0.3% on the month as in July and the annual increase will fall 0.1% to 3.1%. Average weekly hours are projected to climb to 34.4 from 34.3.
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