Dollar near 2-week low as investors look to U.S. jobs data By Reuters

© Reuters. FILE PHOTO: U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. REUTERS/Dado Ruvic/Illustration//File Photo

By Hideyuki Sano

TOKYO (Reuters) – The dollar hovered near two-week lows against a basket of currencies on Tuesday with trade seen driven by month-end flows as investors looked ahead to U.S. jobs figures later in the week.

The U.S. currency steadied from falls after Federal Reserve Chair Jerome Powell on Friday offered no signal on when the central bank plans to cut its asset purchases beyond saying it could be “this year.”

“The payroll data will be the next highlight given the focus on the Fed’s taper. A strong reading will boost expectations the Fed will give markets prior notice in September before a formal decision in November,” said Yukio Ishizuki, senior strategist at Daiwa Securities.

Weaker jobs numbers could instead cement a case for later action – a pre-announcement in November with a formal decision in December.

Trade on Tuesday, however, is likely to be driven more by month-end flows from various businesses for their import and export transactions.

In early trade, the euro held firm at $1.1799, near Monday’s three-week high of $1.1810.

The euro zone’s consumer price data due at 0900 GMT is expected to show that inflation in the currency bloc has gathered pace in August.

Sterling fetched $1.3762 while the yen was little changed at 109.98 yen to the dollar.

The stood at 92.698, near Monday’s two-week low of 92.595.

In Asia, China’s official PMI due around 0200 GMT is being closely watched for clues on the extent of the impact caused by the outbreak of the Delta variant in the country.

The offshore stood at 6.4648 per dollar, not far from a three-week high of 6.4595 touched on Friday.

The Australian dollar, often seen as a proxy bet on the Chinese economy, stood at $0.7292, having peaked on Friday at $0.7317.

The Canadian dollar fetched C$1.2610, having reached a two-week high on Monday, thanks in part to the Canadian current account surplus widening more than expected due to robust oil prices.

Oil prices strengthened to three-week highs as U.S. Gulf Coast platforms, refineries and pipelines grappled with uncertainty on restart timelines after Hurricane Ida wreaked havoc on the region. [O/R]

Emerging market currencies also held firm, with the MSCI emerging market currency index hitting a three-week high of 1,733.33 on Monday. It last stood at 1,732.54.

In cryptocurrencies, bitcoin eased to $47,626 while ether held slightly firmer at $3,277.

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.

Source link

Share Market Today