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FOREX-Dollar edges up after hitting 2-year low; jobs data in focus

Published 07/08/2020, 06:21 am
Updated 07/08/2020, 06:24 am
© Reuters.
EUR/USD
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USD/JPY
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AUD/USD
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USD/TRY
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USD/NOK
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DX
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(Updates prices, details)

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Caroline Valetkevitch

NEW YORK, Aug 6 (Reuters) - The dollar was a tad higher on Thursday after hitting a two-year low earlier in the session and as investors digested mixed data on U.S. jobless claims ahead of Friday's nonfarm payrolls report.

The dollar index, which measures the currency against a basket of currencies, reached a two-year low of 92.495 overnight. It was last trading 0.1% higher on the day at 92.830 =USD .

The move came in the wake of a 4% decline for the index in July, its biggest monthly percentage drop in a decade, as investors fled to the euro and other currencies that appeared to be holding up better as countries around the world grappled with the coronavirus pandemic.

The dollar index initially pared gains on Thursday but was mostly choppy following the claims data, which showed fewer Americans sought jobless benefits last week. But it also showed that 31.3 million people were receiving unemployment checks in mid-July, suggesting the U.S. labor market was stalling. market is mostly just consolidating a little bit after this amazing weakness we've had of late," said Axel Merk, president and chief investment officer at Merk Hard Currency Fund in Palo Alto, California.

Investors are keen to see further details on the U.S. employment situation in the Friday's monthly jobs report.

"Upbeat jobs data could help ease pressure on the dollar. But if the data should aggravate concerns about the U.S. economic fragility, it could spell another leg lower for the currency," Joe Manimbo, senior market strategist at WesternUnion Business Solutions, wrote in a note on Thursday.

Investors are also waiting for U.S. lawmakers to agree on a new package of support related to the coronavirus pandemic. Republicans and Democrats on Thursday remained far apart on what to include in another wave of relief, although Senate Majority Leader Mitch McConnell said the U.S. economy needs an "additional boost" to cope. worried that programs such as unemployment benefits are covering up underlying damage to the economy.

The euro was up 0.1% at $1.1869 against the dollar after earlier reaching a two-year high of $1.1916 EUR=EBS .

In emerging markets, Turkey's lira hit a record low against the euro. Analysts warned of inflation and predicted state attempts to aid the currency would struggle. is a concern because it could have ripple effects elsewhere," Merk said.

The Aussie dollar was last up 0.6% at $0.7237 against the U.S. dollar. AUD=D3

Australia's second-biggest city, Melbourne, started a six-week total lockdown on Thursday, following a resurgence of COVID-19 cases. bid prices at 3:46PM (1946 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1869

$1.1861

+0.07%

+5.88%

+1.1915

+1.1819 Dollar/Yen

JPY=

105.5600

105.5700

-0.01%

-3.03%

+105.6900 +105.3100 Euro/Yen

EURJPY=

125.29

125.25

+0.03%

+2.74%

+125.5800 +124.6900 Dollar/Swiss

CHF=

0.9104

0.9083

+0.23%

-5.93%

+0.9129

+0.9066 Sterling/Dollar GBP=

1.3136

1.3112

+0.18%

-0.93%

+1.3185

+1.3113 Dollar/Canadian CAD=

1.3297

1.3264

+0.25%

+2.39%

+1.3322

+1.3243 Australian/Doll AUD=

0.7237

0.7191

+0.64%

+3.08%

+0.7239

+0.7175 ar

Euro/Swiss

EURCHF=

1.0806

1.0775

+0.29%

-0.42%

+1.0821

+1.0753 Euro/Sterling

EURGBP=

0.9033

0.9044

-0.12%

+6.85%

+0.9053

+0.8985 NZ

NZD=

0.6684

0.6645

+0.59%

-0.77%

+0.6686

+0.6629 Dollar/Dollar

Dollar/Norway

NOK=

8.9788

8.9499

+0.32%

+2.28%

+9.0171

+8.9043 Euro/Norway

EURNOK=

10.6588

10.6176

+0.39%

+8.32%

+10.6738

+10.6076 Dollar/Sweden

SEK=

8.6943

8.6666

+0.35%

-6.99%

+8.7225

+8.6267 Euro/Sweden

EURSEK=

10.3188

10.2833

+0.35%

-1.44%

+10.3241

+10.2702

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