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FOREX-Dollar nursing losses after jobs data mars recovery narrative; sterling buoyant

Published 19/02/2021, 12:26 pm
© Reuters.
EUR/USD
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland

TOKYO, Feb 19 (Reuters) - The U.S. dollar maintained its biggest loss in 10 days on Friday after disappointing U.S. labour market data bruised optimism for the country's speedy recovery from the COVID-19 pandemic.

The greenback continued to buck its traditional role as a safe-harbour currency, falling in sympathy with U.S. stocks overnight after an unexpected increase in weekly jobless claims soured the economic outlook. British pound traded near an almost three-year high reached overnight, when it surged the most in more than a month, amid Britain's aggressive vaccination programme. dollar index =USD was little changed at 90.584 early in the Asian session, after a 0.4% decline overnight cut short a two-day winning streak. For the week, the gauge is now back to more or less break-even.

The string of soft labour data is weighing on the dollar even as other indicators have shown resilience, and as President Joe Biden's pandemic relief efforts take shape, including a proposed $1.9 trillion spending package.

"The prospect of a massive U.S. fiscal stimulus plus a successful vaccine roll-out are solid arguments to bet on a U.S. recovery this year," Rodrigo Catril, senior foreign exchange strategist at National Australia Bank in Sydney, wrote in a client note.

"But the overnight jobless claims data serve as a reminder of the unevenness of the recovery so far."

Sterling GBP= was mostly flat at $1.3965 on Friday following a 0.8% jump in the previous session, when it rose as high as $1.3986 for the first time since April 2018.

The euro EUR=EBS was little changed at $1.2089 after rising 0.4% overnight.

The dollar bought 105.695 yen JPY=EBS , little changed following a two-day retreat from the five-month high of 106.225 reached Wednesday.

In cryptocurrencies, bitcoin BTC=BTSP continued to hover around $51,500, consolidating after hitting a record $52,640 on Wednesday in a rally fuelled by endorsements from Tesla Inc TSLA.O and others. It has risen about 78% so far in 2021, after more than quadrupling last year.

Smaller rival ethereum ETH=BTSP rose to a record $1,951.89 on Friday, just pipping the previous day's high. It has surged some 162% this year.

On Thursday, chipmaker Nvidia Corp NVDA.O announced a new processor designed specifically for mining ethereum.

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Currency bid prices at 101 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.2098

$1.2091

+0.05%

-0.99%

+1.2098

+1.2087 Dollar/Yen

JPY=D3

105.6500

105.6600

+0.07%

+2.36%

+105.7270 +105.7300 Euro/Yen

EURJPY=

127.82

127.79

+0.02%

+0.71%

+127.8500 +127.7500 Dollar/Swiss

CHF=EBS

0.8957

0.8960

+0.01%

+1.29%

+0.8964

+0.8958 Sterling/Dollar GBP=D3

1.3973

1.3972

+0.00%

+2.27%

+1.3973

+1.3965 Dollar/Canadian CAD=D3

1.2671

1.2678

-0.04%

-0.48%

+1.2681

+1.2673 Aussie/Dollar

AUD=D3

0.7774

0.7769

+0.08%

+1.07%

+0.7775

+0.7766 NZ

NZD=D3

0.7220

0.7220

+0.01%

+0.56%

+0.7224

+0.7213 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

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

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