Connect with us

Hi, what are you looking for?

Investing Ideas

Dollar holds advantage as economic data point to more gains

Forex5 minutes ago (Apr 04, 2021 09:05PM ET)

(C) Reuters. Saudi riyal, yuan, Turkish lira, pound, U.S. dollar, euro and Jordanian dinar banknotes are seen in this illustration

By Stanley White

TOKYO (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, not far from its strongest level in a year.

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

The British pound held steady at $1.3824.

The dollar edged up to 0.9423 Swiss franc.

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.

Trading 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 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.

Elsewhere, the Australian dollar edged up to $0.7616, while the New Zealand dollar bought $0.7028.

Dollar holds advantage as economic data point to more gains

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved