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FOREX-Dollar on track for third weekly gain after strong U.S. payrolls data

Published 03/04/2021, 01:11 am
Updated 03/04/2021, 01:12 am
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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DX
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US10YT=X
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BTC/USD
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* U.S. nonfarm payrolls surge more than 900,000 in March

* Economic optimism, rising yields support dollar

* Dollar index rises in five of last six weeks (Adds new comment, U.S. data, updates prices, changes byline, dateline; previous TOKYO)

By Gertrude Chavez-Dreyfuss

NEW YORK, April 2 (Reuters) - The dollar rose on Friday in thin trading, on pace for its third weekly gain, after data showed the world's largest economy created more jobs than expected in March, suggesting it is on a steady path to recovery from the pandemic.

Financial markets are closed in Australia, Singapore, Hong Kong, Britain, Europe and the United States in observance of the Good Friday holiday.

Friday's data showed U.S. nonfarm payrolls surged 916,000 jobs last month, the largest gain since last August. Data for February was revised higher to show 468,000 jobs created instead of the previously reported 379,000. Economists polled by Reuters had forecast payrolls increasing by 647,000 jobs in March. important thing is that the employment trend is pointing in the right direction," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

"We're not where we were pre-March last year. We're still down 5.5% from our peak, but we continue to make great progress," he added.

Sentiment for the dollar has improved in recent weeks, while Treasury yields have spiked, as the Biden administration's planned stimulus of over $2 trillion and a rapid COVID-19 vaccine rollout spurred economic optimism as well as inflation fears.

U.S. benchmark 10-year Treasury yields were last at 1.705% US10YT=RR , up nearly 3 basis points from the previous session. US/

In mid-morning trading, the dollar index was up 0.1% at 92.959 =USD , posting gains in five of the last six weeks. It is headed for its third straight weekly rise.

The dollar's ascent to multi-month highs is likely to continue as more investors bet on economic recovery.

The dollar was up slightly versus the yen at 110.68 yen JPY=EBS , not far from its strongest level in a year at just under 111 yen.

Against the euro EUR=D3 , the dollar was quoted at $1.1777, near a five-month high.

The greenback was little changed against the Swiss currency at US$0.94170 Swiss franc CHF=EBS , after losing 0.2% on Thursday.

Elsewhere, the Australian dollar AUD=D3 slipped 0.2% to US$0.7612.

Across the Tasman Sea, the New Zealand dollar NZD=D3 was flat at US$0.7025.

In the cryptocurrency market, bitcoin BTC=BTSP briefly rose above $60,000 for the first time in two weeks but then pared gains to trade up 0.7% at $59,130.

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Currency bid prices at 9:57AM (1357 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

92.9440

92.8980

+0.07%

3.293%

+93.0750

+92.8300 Euro/Dollar

EUR=EBS

$1.1768

$1.1778

-0.10%

-3.70%

+$1.1787

+$1.1749 Dollar/Yen

JPY=EBS

110.6850

110.6050

+0.09%

+7.15%

+110.7450 +110.3700 Euro/Yen

EURJPY=

130.26

130.23

+0.02%

+2.63%

+130.3100 +130.0400 Dollar/Swiss

CHF=EBS

0.9414

0.9416

+0.01%

+6.44%

+0.9434

+0.9407 Sterling/Dollar GBP=D3

$1.3827

$1.3834

-0.04%

+1.22%

+$1.3852

+$1.3815 Dollar/Canadian CAD=D3

1.2557

1.2553

+0.05%

-1.37%

+1.2573

+1.2530 Aussie/Dollar

AUD=D3

$0.7610

$0.7617

-0.07%

-1.05%

+$0.7637

+$0.7600 Euro/Swiss

EURCHF=

1.1080

1.1090

-0.09%

+2.53%

+1.1097

+1.1074 Euro/Sterling

EURGBP=

0.8510

0.8511

-0.01%

-4.78%

+0.8520

+0.8504 NZ

NZD=D3

$0.7023

$0.7025

+0.03%

-2.14%

+$0.7047

+$0.7017 Dollar/Dollar

Dollar/Norway

NOK=D3

8.5305

8.5265

-0.04%

-0.74%

+8.5415

+8.5235 Euro/Norway

EURNOK=

10.0398

10.0360

+0.04%

-4.08%

+10.0530

+10.0296 Dollar/Sweden

SEK=

8.7219

8.7115

+0.04%

+6.41%

+8.7375

+8.7048 Euro/Sweden

EURSEK=

10.2640

10.2598

+0.04%

+1.86%

+10.2685

+10.2572

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

https://tmsnrt.rs/2RBWI5E

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

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