NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

FOREX-Dollar holds advantage as economic data point to more gains

Published 05/04/2021, 10:50 am
Updated 05/04/2021, 10:54 am
© Reuters.
EUR/USD
-
USD/CHF
-
DX
-

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

* U.S. nonfarm payrolls supports dollar bulls

* Market activity low due to Easter holidays

* Next focus shifts to U.S. ISM services data

By Stanley White

TOKYO, April 5 (Reuters) - The dollar was poised to extend gains against major currencies on Monday after the U.S. jobs report at the end of last week showed the nation's labour market is recovering from the impact of the coronavirus shock.

The focus now shifts to data on the U.S. services sector due later on Monday, which is forecast to show an acceleration in activity that could further encourage dollar bulls.

In January-March the dollar posted its best quarter against major currencies in almost three years thanks to an improving U.S. economy and rising Treasury yields.

The U.S. currency is likely to build on those gains as investors look for ways to bet on a global economic recovery from the worst of the coronavirus pandemic, analysts said.

"I thought there would be a correction lower in the dollar, but that didn't happen," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

"The dollar's upward trend is very strong. In the new quarter perhaps the best thing for investors to do is to just follow this trend."

The dollar was last quoted at 110.63yen JPY=D3 , not far from its strongest level in a year.

Against the euro EUR=D3 , the dollar traded at $1.1765, which is close to a five-month high.

The British pound GBP=D3 held steady at $1.3824.

The dollar edged up to 0.9423 Swiss franc CHF=EBS .

The U.S. economy created more jobs than expected in March, data showed on Friday. However, there was scant reaction in currencies as most major stock and bond markets were closed for Easter holidays. could be subdued again on Monday in Asia as financial markets in Australia, China, and Hong Kong are also closed, although the bias is for the dollar to strengthen further, analysts said.

A survey from the Institute for Supply Management due later on Monday is expected to show U.S. non-manufacturing activity expanded at a faster rate in March, which could underpin the greenback on its forward march.

The dollar index =USD against a basket of six major currencies was little changed at 92.973,

Dollar short positions in the currency market fell last week to the lowest since June last year, U.S. Commodity Futures Trading Commision data showed - another positive sign for the greenback. the Australian dollar AUD=D3 edged up to $0.7616, while the New Zealand dollar NZD=D3 bought $0.7028.

========================================================

Currency bid prices at 0025 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1765

$1.1752

+0.11%

-3.70%

+1.1768

+1.1752 Dollar/Yen

JPY=D3

110.6300

110.6700

+0.00%

+7.15%

+110.7400 +110.6700 Euro/Yen

EURJPY=

130.17

130.13

+0.03%

+2.54%

+130.2500 +130.1300 Dollar/Swiss

CHF=EBS

0.9423

0.9408

+0.19%

+6.54%

+0.9430

+0.9421 Sterling/Dollar GBP=D3

1.3824

1.3825

-0.04%

+1.16%

+1.3830

+1.3820 Dollar/Canadian CAD=D3

1.2568

1.2585

-0.13%

-1.30%

+1.2586

+1.2566 Aussie/Dollar

AUD=D3

0.7616

0.7591

+0.34%

-0.99%

+0.7620

+0.7607 NZ

NZD=D3

0.7028

0.7017

+0.16%

-2.13%

+0.7031

+0.7023 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.