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

Dollar steady even as yields edge up ahead of U.S. jobs report

08/05/2021 | 04:35pm EDT
FILE PHOTO: Four thousand U.S. dollars are counted out by a banker at a bank in Westminster

NEW YORK (Reuters) - The dollar took a breather on Thursday, a day after being given a boost from seemingly hawkish comments by a top Federal Reserve official, as the market awaited new direction from Friday's U.S. jobs report.

The dollar index against major currencies was down 0.03% to 92.249 in the afternoon in New York.

On Wednesday, Fed Vice Chair Richard Clarida said conditions for an interest rate hike could be met in late 2022, setting the stage for a move in early 2023.

"Clarida's comments are allowing the dollar to stay well supported into the payrolls numbers on Friday," said ING FX strategists Francesco Pesole and Chris Turner.

The greenback, which gained 0.2% on Wednesday, was traded in a relatively tight range through the day, unmoved by new government reports on jobless claims and the trade deficit that came in close to estimates from economists.

It also shrugged off another up-day in U.S. stocks and movement in the U.S. Treasury market, where the yield on the 10-year note rose as much as 4 basis points and was last at 1.2152%.

"The market has been in a wait-and-see mode until we get past tomorrow's nonfarm payroll report," said Ed Moya, senior market analyst at broker OANDA.

Friday's employment report for U.S. employment in July is seen as highly uncertain but critical to Fed policymakers deciding when to begin tapering support for the economy.

"If we get an impressive read tomorrow, that would have the market firmly pricing in tapering and allow the yield curve to steepen and provide the dollar with support," Moya said.

According to a Reuters survey of economists, nonfarm payrolls likely increased by 880,000 jobs in July, up from 850,000 in June. Economists have warned that the spread of the Delta variant of the coronavirus and mixed readings from labor market indicators make estimates for July troublesome.

The British pound was up 0.3% to $1.3931 by 3:06 p.m. ET (1906 GMT) after the Bank of England kept the size of its bond-buying programme unchanged and held its benchmark interest rate at a historic low of 0.1%.

The central bank said it would start reducing its stock of bonds when its policy rate reaches 0.5% by not reinvesting proceeds and that it would consider actively selling down holdings when the rate reaches at least 1%.

"The undertones of today's policy statement and monetary policy report (MPR) are much more hawkish than initially expected," said Simon Harvey, senior FX analyst at Monex Europe.

The euro was flat at $1.1835.

Against the yen, the dollar rose 0.25% to 109.75.

Ether, the second-largest cryptocurrency, was up 3% to $2,810 after an initial dip when the Ethereum blockchain network activated a technical change that was to take some tokens out of circulation.

Bitcoin rose 3% to $40,987.

(Reporting by David Henry in New York and Ritvik Carvalho in London; additional reporting by Wayne Cole in Sydney; Editing by Marguerita Choy and Jonathan Oatis)

By David Henry


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) 0.04% 0.52917 Delayed Quote.-6.02%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.03% 79.924 Delayed Quote.0.70%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.02% 0.72649 Delayed Quote.-5.25%
BRITISH POUND / JAPANESE YEN (GBP/JPY) 0.02% 151.005 Delayed Quote.7.26%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) 0.04% 0.570773 Delayed Quote.-0.66%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.05% 86.184 Delayed Quote.6.64%
EURO / BRITISH POUND (EUR/GBP) 0.00% 0.85432 Delayed Quote.-4.55%
INDIAN RUPEE / BRITISH POUND (INR/GBP) 0.02% 0.009889 Delayed Quote.-1.60%
INDIAN RUPEE / JAPANESE YEN (INR/JPY) 0.01% 1.492448 Delayed Quote.5.55%
JAPANESE YEN / SWISS FRANC (JPY/CHF) 0.11% 0.8473 Delayed Quote.-1.39%
NEW ZEALAND DOLLAR / JAPANESE YEN (NZD/JPY) 0.05% 77.411 Delayed Quote.4.64%
US DOLLAR / BRITISH POUND (USD/GBP) 0.04% 0.728587 Delayed Quote.-0.88%
US DOLLAR / EURO (USD/EUR) 0.03% 0.852878 Delayed Quote.3.81%
US DOLLAR / JAPANESE YEN (USD/JPY) 0.04% 110.02 Delayed Quote.6.30%
Latest news "Economy & Forex"
02:10pU.s. cdc says 181,382,976 individuals have been fully vaccinated against covid-19 as of sept 19 versus 181,035,022 individuals as of sept 18
RE
02:10pU.s. cdc says 2.16 mln people received an additional covid-19 vaccine dose since august 13, 2021
RE
02:09pU.s. cdc says administered 385,586,012 doses of covid-19 vaccine as of sept 19 vs 384,911,290 doses administered as of sept 18
RE
02:09pU.s. cdc says 211,776,515 individuals have received at least one dose of covid-19 vaccine as of sept 19 versus 211,489,242 individuals as of sept 18
RE
02:08pU.s. cdc says delivered 466,561,785 doses of covid-19 vaccine as of sept 19 versus 466,569,635 doses delivered as of sept 18
RE
01:59pDEUTSCHE LUFTHANSA : Lufthansa launches $2.5 billion capital increase to repay state bailout
RE
01:42pWorld leaders return to U.N. with focus on pandemic, climate
RE
01:32pNigeria brings in custody rules to guard $9.7 billion funds industry
RE
01:32pARGUS MEDIA : Baker Hughes agrees new Iraq gas capture project
PU
12:30pUK has plans to protect consumers from soaring gas prices -business minister
RE
Latest news "Economy & Forex"