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DJ Dollar Expected to Keep Upper Hand Vs Euro -- Market Talk

· 02/05/2021 03:20

0820 GMT - A robust U.S. non-farm payroll report for January may weaken the dollar slightly but the currency is still likely to stay stronger against the euro, Commerzbank says. Positive labor market data could dampen expectations for large-scale U.S. fiscal stimulus to support the country's recovery, Commerzbank's Esther Reichelt says. However, the EU's recovery fund could turn out to be a damp squib in coming months, she says. The EU's difficulties are unlikely to end any time soon and U.S. lawmakers should approve further stimulus so the dollar should maintain the upper hand for now, she says. EUR/USD rises 0.1% to 1.1981, having earlier reached a two-month low of 1.1953, according to FactSet. The payrolls report is due at 1330 GMT. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 03:20 ET (08:20 GMT)

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