Dollar Rises to Highest in Two Weeks Ahead of Jobs
The dollar gauge rose to the highest level since Nov. 6, strengthening against all of its peers in the Group of 10, as traders await the delayed September jobs report. The yen continued its slide Wednesday and is now in an oversold territory.
The Bloomberg Dollar Spot Index advanced 0.4%
In August, the value of US imports decreased 5.1%, the most in four months, while exports edged up. The goods and services trade gap narrowed almost 24% from the prior month to $59.6 billion, the Commerce Department said
The dollar is climbing as we are seeing “the confirmation that weak US import demand will be a drag on global growth,” said Aroop Chatterjee, strategist at Wells Fargo in New York
Traders will also be watching the release of minutes from the Federal Reserve’s meeting last month
The Commodity Futures Trading Commission will start publishing the backlog of Commitments of Traders reports on Wednesday
“I think it’s the fiscal stories in the UK and Japan that is effecting sentiment,” Paresh Upadhyaya at Pioneer Investments said about the dollar move. “We had some news out of both countries that are effecting both crosses disproportionately”
GBP/USD declined 0.5% to 1.3074; data showed that UK inflation fell for the first time in seven months in October
Traders are paying up for protection against swings in the pound leading into the UK Autumn Budget
USD/JPY rose 0.7% to 156.63, the highest level since late January
The Bank of Japan governor, Kazuo Ueda, is set to meet with key cabinet ministers to discuss the government’s joint accord with the central bank
A member of a key panel advising Japanese Prime Minister Sanae Takaichi said the central bank isn’t likely to raise its benchmark rate before March
EUR/USD slipped 0.4% to 1.1540
NZD/USD down 1% at 0.5603
Source : Bloomberg.com
