Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dollar rebound holds as yields steady ahead of jobs data

08/04/2021 | 04:18pm EDT
FILE PHOTO: A US dollar note is pictured alongside Australian dollars in this picture illustration taken in Washington

NEW YORK (Reuters) - The dollar held gains on Wednesday after a quick recovery from an earlier fall as markets chose to focus on a suggestion from a top U.S. Federal Reserve official that the central bank may reduce support for the improving economy more quickly than widely thought.

The bullish comments on the U.S. economy, by Fed Vice Chair Richard Clarida, triggered a rebound in U.S. Treasury yields and turned market attention away from the release two hours earlier of an unexpectedly weak private employment report that had driven the dollar down.

The dollar swung from being down 0.3% for the day to up 0.3%on the opposing clues on whether the United States will see strong economic growth and higher interest rates or a serious drag from the coronavirus pandemic.

The ADP National Employment Report was seen as possibly foreshadowing softness in July jobs data due on Friday. But there were doubts about its value as a predictor and another report showed U.S. service industry activity jumping to a record high in July.

The currency markets have been expecting Friday's non-farm payrolls report to be the next big catalyst for exchange rates, followed by comments expected at a symposium of central bankers at the end of this month in Jackson Hole, Wyoming.

In the afternoon in New York, the dollar index against major currencies was up 0.2% to 92.246.

The Japanese yen, often seen as a competing safe haven, was a big beneficiary of the dollar's initial fall on the ADP report and gained to 108.77 per dollar, but couldn't hold its break below 109. The dollar was last trading at 109.45 yen, up 0.4%.

The euro and British pound also swung against the greenback. The euro was last trading at $1.1840, off 0.2% for the day. Sterling was down 0.2% to $1.3889.

The initial downdraft came when the ADP report showed U.S. private payrolls increased about half as much as economists had expected, likely constrained by shortages of workers and raw materials.

"It was a fairly big disappointment," said Mazen Issa, senior currency strategist at TD Securities.

The ADP report has a mixed record of predicting the government report, Issa said, but added, "the miss is substantial enough that the markets may be a little bit more nervous going into Friday's report."

Federal Reserve Chair Jerome Powell and other policy makers have recently emphasized that upcoming employment reports will be critical to the board's decisions about when and how to cut back on support for the economy.

Fed policy maker Robert Kaplan told Reuters on Wednesday that more "progress" in the July and August jobs reports would be reason to start pulling back on bond purchases "soon."

The dollar has lost value in recent weeks as declining yields made strategists question whether the U.S. economy will grow as much as they had expected in light of the spread of the highly contagious Delta variant of COVID-19.

Ether, the second-largest cryptocurrency, rose 7% to $2,690 ahead of an upcoming change in the Ethereum blockchain network that will take some tokens out of circulation.

Bitcoin rose 4% to $39,640.


Currency bid prices at 3:14PM (1914 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index

92.2460 92.0360 +0.24% 2.517% +92.3110 +91.8140


$1.1840 $1.1865 -0.21% -3.09% +$1.1899 +$1.1833


109.4500 109.0300 +0.39% +5.94% +109.6700 +108.7250


129.58 129.35 +0.18% +2.10% +129.8100 +129.1500


0.9062 0.9041 +0.25% +2.45% +0.9076 +0.9019


$1.3889 $1.3914 -0.18% +1.67% +$1.3957 +$1.3889


1.2549 1.2535 +0.12% -1.45% +1.2562 +1.2516


$0.7381 $0.7393 -0.14% -4.02% +$0.7426 +$0.7370


1.0728 1.0726 +0.02% -0.73% +1.0740 +1.0724


0.8522 0.8529 -0.08% -4.64% +0.8532 +0.8506


Dollar/Dollar $0.7045 $0.7019 +0.41% -1.86% +$0.7088 +$0.7018


8.8365 8.8215 +0.15% +2.89% +8.8480 +8.7780


10.4630 10.4650 -0.02% -0.04% +10.4778 +10.4180


8.6058 8.5979 -0.15% +4.99% +8.6126 +8.5666


10.1894 10.2049 -0.15% +1.12% +10.2130 +10.1838

(Reporting by David Henry in New York and Iain Withers in London; editing by Kirsten Donovan and Sonya Hepinstall)

By David Henry

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / EURO (AUD/EUR) 0.59% 0.62321 Delayed Quote.-1.68%
BITCOIN - EURO 0.15% 36878.47 Real-time Quote.56.08%
BITCOIN - UNITED STATES DOLLAR -0.06% 43150.59 Real-time Quote.49.55%
BRITISH POUND / EURO (GBP/EUR) 0.46% 1.17154 Delayed Quote.4.22%
BRITISH POUND / US DOLLAR (GBP/USD) 0.28% 1.37076 Delayed Quote.-0.03%
CANADIAN DOLLAR / EURO (CAD/EUR) 0.45% 0.677401 Delayed Quote.4.79%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.29% 0.79234 Delayed Quote.0.59%
DOW JONES FXCM DOLLAR INDEX -0.05% 12002.49 Delayed Quote.2.85%
ETHEREUM (ETH/BTC) -1.40% 0.06964 Real-time Quote.177.36%
ETHEREUM (ETH/EUR) -1.38% 2566.751592 Real-time Quote.325.70%
ETHEREUM - UNITED STATES DOLLAR -1.51% 3001.82 Real-time Quote.314.81%
EURO / US DOLLAR (EUR/USD) -0.20% 1.16983 Delayed Quote.-4.06%
INDIAN RUPEE / EURO (INR/EUR) 0.11% 0.011568 Delayed Quote.3.17%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.07% 0.013539 Delayed Quote.-1.05%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.04% 0.70186 Delayed Quote.-2.33%
Latest news "Economy & Forex"
03:32pGRAYSCALE BITCOIN TRUST BTC : Cryptocurrencies see 6th straight week of inflows, led by bitcoin -CoinShares data
03:30pU.s. cdc says 2.78 mln people received an additional covid-19 vaccine dose since august 13, 2021
03:30pU.s. cdc says 183,888,907 individuals have been fully vaccinated against covid-19 as of sept 27 vs 183,670,870 individuals as of sept 26
03:30pU.s. cdc says 213,657,193 individuals have received at least one dose of covid-19 vaccine as of sept 27 vs 213,456,787 individuals as of sept 26
03:30pU.s. cdc says delivered 471,818,715 doses of covid-19 vaccine as of sept 27 vs 471,814,235 doses delivered as of sept 26
03:30pU.s. cdc says administered 390,664,923 doses of covid-19 vaccine as of sept 27 vs 390,114,328 doses administered as of sept 26
03:25pRestaurant chain Portillo's reveals revenue jump in IPO filing
03:21pOil up on tight supply, Brent crude nears $80 a barrel
03:19pCHINA EVERGRANDE : U.S. dollar gains, tracks rise in Treasury yields
03:19pCAA to buy rival ICM Partners in merger of major Hollywood talent agencies
Latest news "Economy & Forex"