Dollar Set for Worst Week Since 2022 After Jobs
A Bloomberg gauge of the dollar held the session’s losses after the February jobs report showed weaker-than-anticipated job creation and a rising unemployment rate, affirming wagers on Federal Reserve rate cuts this year. The euro is on track for its best week since 2009.
The Bloomberg Dollar Spot Index falls 0.2%, dipping to a session low after the release of US jobs data and below the 200-DMA seen around 1267 level
The gauge is down 2.6% on the week, the worst performance since Nov. 2022.
EUR/USD rallies 0.7% to 1.0860; the single currency is on pace for a nearly 5% weekly gain, the best run since 2009.
Options leave room open for more gains: The pullback in the latest rally for risk reversals is shallow and demand for low-delta optionality over the next month in EUR/USD surpasses that in USD/JPY for the first time since Russia’s invasion of Ukraine three years ago.
EUR/GBP up a fifth day, rises 0.4% to 0.8409; the 1.9% weekly advance is the widest in two years.
USD/CAD rises for first day in four, up 0.5% to 1.4366 after mixed Canada February jobs report.
Canadian net change in employment was 1.1k versus 20.0k expected, but unemployment rate holds steady at 6.6%.
Source: Bloomberg
