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FOREX-Dollar pauses after losses as investors seek fresh clues on U.S. economy

· 02/08/2021 00:47
FOREX-Dollar pauses after losses as investors seek fresh clues on U.S. economy

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

Jobs data takes shine off dollar rebound

Investors looking to U.S. CPI, timing of stimulus

Ethereum falls in spot market as traders eye futures debut

By Stanley White

- The dollar steadied against most currencies on Monday as traders awaited more data on the U.S. economy after a disappointing jobs report last week slammed the breaks on a rally in the greenback.

The euro held gains versus the dollar but faces a test later on Monday with data that is expected to show German industrial output growth slowed at the end of last year.

Speculators have been reducing short positions in the dollar, but some analysts say better U.S. economic data and continued progress in fighting the COVID-19 pandemic will be needed for further dollar gains.

"Soft non-farm payrolls has really pulled the ladder out from under the dollar," said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities.

"Now the markets are questioning whether the dollar can rise any further. A lot depends on the coronavirus, but we also need to know when U.S. fiscal stimulus will pass."

Against the euro EUR=D3, the dollar traded at $1.2042 after a 0.7% slump on Friday.

The British pound GBP=D3 bought $1.3731, close to an almost three-year high.

The dollar was quoted at 105.49 yen JPY=D3, having pulled back from a three-month high reached on Friday.

The U.S. economy created fewer jobs than expected in January while job losses the previous month were deeper than initially reported, data at the end of last week showed. nL1N2KA34D

The release of U.S. consumer prices and consumer sentiment later this week will help determine whether a recent rise in inflation expectations and Treasury yields was justified.

Any disappointing numbers from either report could knock the dollar lower, some analysts said. Investors are also closely monitoring a U.S. debate on additional fiscal stimulus.

President Joe Biden and his Democrats are pushing ahead with $1.9 trillion COVID-19 relief package. House of Representatives Speaker Nancy Pelosi has predicted the final relief legislation could pass Congress before March 15. nL1N2KB0UF

The dollar index =USD against a basket of six major currencies stood at 91.045, after falling 0.6% on Friday.

Speculators' net bearish bets on the dollar fell to $29.95 billion for the week ended Feb. 2, compared with a net short position of $33.81 billion for the previous week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data. nL1N2KB2NJ

In the cryptocurrency market, ethereum spot prices ETH=BTSP rose 0.09% to $1,618 after the listing of ethereum futures on the Chicago Mercantile Exchange on Sunday. nL1N2KA2ER

Bitcoin BTC=BTSP, the most popular cryptocurrency, fell 0.42% to $38,693.

The onshore yuan CNY=CFXS edged up slightly to 6.4577 per dollar, but trade is likely to be subdued before week-long Chinese New Year holidays beginning Thursday.

Elsewhere, the Australian dollar AUD=D3 held steady at $0.7675. Across the Tasman Sea, the New Zealand dollar NZD=D3 edged up to $0.7200.

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Currency bid prices at 2:22PM (0522 GMT)

Description

RIC

Last

U.S. Close
Previous
Session

Pct Change

YTD Pct
Change

High Bid

Low Bid

Euro/Dollar

EUR=EBS

$1.2042

$1.2050

-0.06%

-1.43%

+1.2060

+1.2030

Dollar/Yen

JPY=D3

105.4900

105.3550

+0.15%

+2.15%

+105.5400

+105.4050

Euro/Yen

EURJPY=

127.03

126.93

+0.08%

+0.09%

+127.0600

+126.8700

Dollar/Swiss

CHF=EBS

0.8995

0.8986

+0.10%

+1.67%

+0.9006

+0.8986

Sterling/Dollar

GBP=D3

1.3731

1.3736

-0.07%

+0.48%

+1.3740

+1.3712

Dollar/Canadian

CAD=D3

1.2764

1.2757

+0.05%

+0.24%

+1.2768

+1.2750

Aussie/Dollar

AUD=D3

0.7675

0.7679

-0.03%

-0.21%

+0.7682

+0.7660

NZ Dollar/Dollar

NZD=D3

0.7200

0.7194

+0.10%

+0.28%

+0.7212

+0.7175










All spots FX=

Tokyo spots AFX=

Europe spots EFX=

Volatilities FXVOL=

Tokyo Forex market info from BOJ TKYFX


(Reporting by Stanley White; Editing by Sam Holmes and Ana Nicolaci da Costa)

((stanley.white@tr.com; +81 (0)3 4563 2799; twitter.com/stanleywhite1 ;))