Dollar languishes near one-month low as investors eye U.S. jobs, RBA



By Kevin Buckland

TOKYO, Aug 2 (Reuters) - The dollar hovered just above a one-month low on Monday, with traders holding tight positions heading into a busy week that includes U.S. jobs data and an Australian central bank decision.

The dollar index =USD , which measures the greenback against six major peers, stood at 92.065, down slightly from Friday, when it dipped as low as 91.775 for the first time since June 28.

The index dropped 0.88% last week, its worst performance since early May, after Federal Reserve Chair Jerome Powell reiterated mid-week that rate increases were "a ways away" and the job market still had "some ground to cover."

Fed Governor Lael Brainard echoed those comments on Friday, saying "employment has some distance to go."

The dollar index last month hit its highest since the start of April at 93.194 as traders positioned for a start to tapering as soon as this year.

Dollar net long positions rose to their highest level since early March of last year in the week to July 27, according to Reuters calculations and the latest data from the Commodity Futures Trading Commission.

Economists in a Reuters poll forecast a 926,000 job increase in July's non-farm payrolls number, due Friday, which would be the biggest increase for 11 months. The U.S. unemployment rate is forecast to fall to 5.7%, from 5.9% in June.

"The U.S. payrolls will be a marquee event risk," Chris Weston, head of research at broker Pepperstone, wrote in a note to clients.

"If we do see the elusive 1 million jobs created, then calls for a September announcement for tapering the asset-purchases program will ramp up," buoying the dollar, whereas a print of around 703,000 or lower would push the currency lower, he said.

The dollar was little changed at 109.67 yen JPY=EBS on Monday, and slightly weaker at $1.1873 per euro EUR=EBS .

National Australia Bank predicts the euro could rise toward $1.20 before pushing even higher as euro-area growth quickens amid an accelerating vaccination drive.

"As the euro zone economy picks up relative to the U.S., we should start to see the euro in particular starting to improve," Ray Attrill, NAB's head of forex strategy, said in a podcast for clients.

"EU recovery fund spending is due to start kicking in soon, at the same time that U.S. fiscal support is going to be waning."

Sterling GBP=D3 rose 0.11% to $1.39105, with a policy announcement by the Bank of England due on Thursday.

The Aussie dollar AUD=D3 was flat at $0.7347 before the Reserve Bank of Australia (RBA) meets on Tuesday, when it is widely expected to backtrack on a previous decision to taper stimulus, with protracted COVID-19 lockdowns dragging on growth.

In cryptocurrencies, bitcoin BTC=BTSP slipped 0.36% to trade below $40,000, after sliding 5.67% over the weekend.

Smaller rival ether ETH=BTSP experienced opposite fortunes, holding gains from the weekend to trade around $2,550. It climbed as high as $2,699 on Sunday for the first time in almost two months, up from as low as $1,717.17 less than two weeks ago.

========================================================

Currency bid prices at 0623 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1873

$1.1867

+0.05%

-2.82%

+1.1876

+1.1860 Dollar/Yen

JPY=EBS

109.6400

109.6950

-0.01%

+6.19%

+109.7650 +109.6300 Euro/Yen

<EURJPY=EB 130.19

130.15

+0.03%

+2.56%

+130.2500 +130.0900

S>

Dollar/Swiss

CHF=EBS

0.9054

0.9051

+0.04%

+2.35%

+0.9065

+0.9055 Sterling/Dollar GBP=D3

1.3911

1.3896

+0.11%

+1.82%

+1.3913

+1.3888 Dollar/Canadian CAD=D3

1.2470

1.2468

+0.02%

-2.07%

+1.2490

+1.2465 Aussie/Dollar

AUD=D3

0.7348

0.7347

+0.02%

-4.47%

+0.7350

+0.7330 NZ

NZD=D3

0.6970

0.6977

-0.13%

-2.97%

+0.6977

+0.6953 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX



World FX rates Link



Reporting by Kevin Buckland; Editing by Sam Holmes and
Jacqueline Wong

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.