Dollar consolidates above 1-week low ahead of the US jobs report
The US dollar rose on Friday, to maintain above the 1-week low hit yesterday, to head for the first gain in 5 days, shining as the best alternative investment amid risk aversion after US President Donald Trump announced testing positive for the Coronavirus, ahead of the US jobs report for September.
The dollar index rose over 0.3% to 94.03 points, after it opened at 93.73 points, and hit an intraday low of 93.71 points.
The index lost 0.1% yesterday, posting its fourth straight daily loss, and hit a 1-week low of 93.53 points.
Demand for the US dollar was renewed, as most global stocks fell on risk aversion, after the President of the United States announced he tested positive for Covid-19.
US President Donald Trump tweeted that he and the first lady tested positive for Covid-19 and began quarantine and recovery process immediately
Investors are anticipating the release of key data later today, as the non-farm employment change reading will be released at 12:30 GMT, with forecasts of the creation of 0.900 million new jobs in September vs. 1.371 million jobs in August, and the unemployment rate is expected to drop to 8.2% from 8.4%, while the average hourly earnings is expected to rise by 0.5% vs. 0.4%.
The Canadian dollar rose against most major currencies on Thursday, ahead of the release of Canada's jobs data tomorrow. Lonnie has been lifted by the recovery in oil prices, as oil is a major commodity for Canada's exports and budget revenues. As of 18:09 GMT, WTI October futures at Nymex rose 3.2% to $41.2 a barrel, after hitting a high of $41.2 and a low of $39.7. Brent November futures rose 3.3% to $43.3 a barrel, with a high of $43.4 and a low of $41.8. Canada will release its monthly jobs report Friday, with forecasts that the economy has created 150,000 new jobs in September and for the unemployment rate to fall to 9.8%. As of 18:25 GMT CAD/USD rose 0.4% to 0.7573, after hitting a high of 0.7576 and a low of 0.7533.
The Japanese yen rose on Friday, after the release of positive economic data, amid volatility in global markets. US President Donald Trump tweeted that he and the first lady tested positive for Covid-19 and began quarantine and recovery process immediately at the White House, and sources said that the president's youngest son Barron also tested positive for the virus. The US Labor Department revealed today that the US economy has added 661,000 new jobs in September, lower than forecasts of 900,000, while the unemployment rate fell to 7.9% from 8.4%, and beat forecasts of 8.2%. From Japan, the unemployment rate rose to 3% in September from August's 2.9%, on par with forecasts. The Japanese monetary base index jumped 14.3% in September, beating forecasts of 11.9%, and the consumer confidence index rose to 32.7 points, higher than forecasts of 31.6. As of 21:10 GMT, USD/JPY fell 0.1% to 105.3, after hitting a high of 105.6 and a low of 104.9.
The US dollar fell against its peers on Monday, amid news about improved health conditions of US President Donald Trump. Trump announced on Friday that he and his wife have tested positive for the coronavirus and was put under quarantine. The President was afterwards transferred to Walter Reed Military Medical Center as a precaution due to concerns that the virus will affect his health badly because of his old age and overweight. However, medical sources expressed that Trump's condition is improving and he is responding to the treatment. Secretary of State Mike Pompeo stressed the readiness of the US administration for all developments and scenarios. Data showed today that the US services PMI rose to 57.8 points in September vs. 56.9 points in August. The dollar index fell against a basket of currencies by 0.3% to 93.5 points as of 19:37 GMT, after it hit a high of 93.8 and a low of 93.3.