The U.S. dollar edged higher in choppy trading on Friday after May’s non-farm payrolls report showed employment surged but a jump in unemployment rate capped the gains. The report showed that payrolls in the public and private sector increased by 339,000 in May, surging past expectations. Economists polled by Reuters expected non-farm payrolls to have increased by 190,000 in May, from April’s 253,000 rise. Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April. The dollar index , which measures the U.S. currency ...

China’s yuan has skidded to six-month lows against the dollar and analysts say it could weaken further as investors fret over a bumpy pandemic recovery in the world’s second-largest economy. Disappointing economic data, widening yield differentials with the United States, upcoming corporate dividend payments and continued capital outflows through foreign selling of stocks and bonds have combined to drag the currency down to levels last seen in November. The yuan has depreciated more than 5% against the surging dollar since the highs hit in January, when global markets embraced China’s ...

Even if the U.S. dollar’s singular dominance as global currency of choice is in fact ebbing, it may not automatically lead to a weaker dollar exchange rate – and could periodically mean the opposite. A Federal Reserve less worried about the overspill of its monetary policies to the rest of the world is a central bank more inclined to extreme tightening and easing. And a less dollarised global economy could potentially free the Fed to stay locally focussed – for better or worse – and keep inflation lower over time. ...

USD: Dollar bias looks lower unless NFP comes in strong Thursday proved somewhat of a turnaround session for the dollar. News that the Federal Reserve was preparing to skip a hike at the June meeting plus later progress on the debt ceiling deal saw the DXY sell off 0.8%. Whether this marks an important reversal for the dollar will largely be down to whether US activity data, particularly US price data, allows the Fed room to breathe – i.e. to reflect on the 500bp of tightening so far – without ...

The dollar headed for its largest weekly fall since mid-January on Friday as the view took hold among investors that the Federal Reserve will forgo an interest rate hike this month, which would diminish the greenback’s appeal to non-U.S. buyers. The U.S. Senate’s passage of a bill to suspend the debt ceiling and avert a disastrous default also removed a pillar of support for the dollar, which had paradoxically been a key beneficiary because of its safe-haven status. The Australian dollar surged after an increase in the minimum wage stoked ...

The euro recovered from a two-month low Thursday after European Central Bank (ECB) President Christine Lagarde said inflation remained too high and further policy tightening was necessary. Data showed on Thursday that inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3% in a Reuters poll of economists. But the current level is still more than three times the ECB’s 2% inflation target. “Today, inflation is too high and it is set to remain so for too long,” Lagarde ...

USD: We’re hearing more of this term ‘skip’ Having enjoyed a decent rally on the back of some surprisingly strong JOLTS job opening data, the dollar sold off late yesterday on a couple of Federal Reserve speakers (Patrick Harker and Philip Jefferson) suggesting that the Fed could potentially ‘skip’ a rate hike at the June meeting – but leave the door open for a July hike. That term ‘skip’ first entered the Fed lexicon with remarks from Christopher Waller last week and suggests the Fed is indeed starting to use ...

The euro steadied on Thursday near a two-month low after data showed euro zone inflation eased more than expected last month, backing arguments for only cautious further rate hikes by the European Central Bank (ECB). Inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3% in a Reuters poll of economists. The euro flattened at $1.0690, towards a two-month low of $1.0635 touched on Wednesday, as the ECB could be under less pressure to extend its monetary tightening much ...

The U.S. dollar rose strongly on Wednesday to a more than two-month high after data showed European inflation is cooling quicker than expected and China’s recovery is sputtering. The euro fell to $1.066 earlier in the session, the lowest since March 20. It was last down 0.64% to $1.06665. That helped the dollar index , which measures the greenback against six major peers, climb to 104.63, its highest since March 16. It was last up 0.509% at 104.570. Data on Wednesday showed inflation in France and some of Germany’s biggest ...

USD: China’s data keep the dollar attractive A correction in the dollar following a long weekend in many parts of the world and fuelled by the US debt limit bipartisan deal proved rather short-lived. What is still offering a good deal of support to the dollar is the market’s rising speculation for another 25bp hike by the Fed in June, which is now priced in with a 64% implied probability, according to the Fed Funds futures curve. Should the Fed pause in June, markets attach a 98% probability to a ...

The U.S. dollar rose strongly on Wednesday to a more than two-month high after data showed European inflation is cooling quicker than expected and China’s recovery is sputtering. The euro was last down 0.67% at $1.066, the lowest since March 20. That helped the dollar index, which measures the greenback against six major peers, climb 0.51% to 104.6, its highest since March 16. Data on Wednesday showed that inflation in France and some of Germany’s biggest states is slowing quickly. Analysts said the figures reduced the pressure on the European ...

Currency markets were choppy on Tuesday as the dollar hit a 10-week high against peers and a six-month top versus the yen before retreating after Japanese officials gave their currency a nudge. Japan will closely watch currency market moves and respond “appropriately” as needed, the country’s top currency diplomat said on Tuesday after financial authorities met in response to a weakening in the yen to its softest in six months versus the dollar. The yen strengthened on news of the meeting, and held onto those gains, with the currency last ...

The yen strengthened on Tuesday on news of a meeting of Japan’s finance ministry and central bank, while elsewhere the dollar rose to a two-month high against a basket of its peers after the U.S. debt ceiling deal. The dollar was last down 0.18% against the Japanese yen at 140.18 after the country’s finance ministry said senior officials from the Ministry of Finance, Bank of Japan and Financial Services Agency will meet from 5:30 p.m. (0830 GMT). The U.S. currency had hit a six-month high of 140.93 yen before the ...

The dollar nudged down on Monday, pulling back from six-month peaks against the yen as a U.S. debt ceiling deal lifted risk appetite in world markets and dented the greenback’s safe-haven appeal. U.S. President Joe Biden on Sunday finalised a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote. Having briefly touched a six-month high of 140.91 yen during Asia trade, the dollar drifted lower and was last ...

The dollar nudged lower on Monday, pulling back from six-month peaks against the yen as a U.S. debt ceiling deal lifted risk appetite across world markets and dented the greenback’s safe-haven appeal. U.S. President Joe Biden on Sunday finalised a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote. Having briefly touched a six-month high of 140.91 yen JPY=EBS during Asia trade, the dollar drifted lower and was ...