Dollar Rises Slightly Ahead of Friday's Non-Farm Payrolls Data
The US dollar edged higher for the third straight session, as market participants digested the latest US economic data releases and prepared for Friday's Non-Farm Payrolls (NFP) report.
The Bloomberg Dollar Spot Index rose around 0.1%, extending its gains after gaining 0.3% in the previous two sessions. This strengthening was supported by data showing US service sector activity growing at the fastest pace in more than a year, although private sector employment and job openings data signaled weaker growth.
The market is now focused on two major triggers for the weekend: the December NFP release and President Donald Trump's potential decision on global tariffs, also scheduled for Friday. The combination of these two events is considered to be able to shift interest rate expectations and the dollar's movement in the near term.
Several analysts believe the risk of dollar strengthening remains if US growth data continues to be stronger than expected, as this could disrupt the market scenario that has been building up dollar short positions on the assumption that the Fed will be more dovish. In the short term, employment data remains the key determinant.
In other currency markets, USD/JPY edged up to 156.90. Japanese adjusted wages (stripping out bonuses and overtime) rose 2% year-on-year in November—below the 2.3% forecast. AUD/USD fell to 0.6716 after an RBA official said the chances of an imminent interest rate cut were still very slim, while EUR/USD held steady at 1.1675 and GBP/USD remained flat at 1.3453.
Key Points (5 Points):
- The dollar edged higher for a third day ahead of Friday's Nonfarm Payrolls (NFP).
- The Bloomberg Dollar Spot Index rose 0.1%, after two previous sessions totaling +0.3%.
- US data mixed: services firmed, but private payrolls and job openings weakened.
- Friday's focus: NFP + potential Trump global tariff decisions.
- Major movements: USD/JPY 156.90, AUD/USD 0.6716, EUR/USD 1.1675, GBP/USD 1.3453. (asd)
Source: Newsmaker.id
