© Reuters. Dollar near 4-week high ahead of monthly jobs data
FXNEWSTODAY – The US dollar rose in the European market on Friday against a basket of global currencies, to resume gains that were paused yesterday as part of correction operations, to come close once again to touching the highest level in four, as currency buying activity as the best available investment remains high.
And this is in light of the bets about the Federal Reserve continuing the path of monetary tightening and raising prices, in light of the narrow labor market conditions and the flexibility enjoyed by the largest economy in the world.
In order to re-evaluate these bets, investors are awaiting, shortly, the release of monthly data in the United States during July, which shows the strength of the American labor market during the third quarter of this year.
The American
The dollar index rose by about 0.2% to the level of 102.62 points, from the opening level of today’s trading at 102.45 points, and recorded the lowest level at 102.36 points.
The index ended yesterday’s trading down by 0.15%, in the first loss in the last six days, after recording earlier in the trading the highest level in four weeks at 102.84 points.
In terms of trading this week, the US dollar index is up by 0.9% so far, and is about to achieve its third consecutive weekly gain, in light of the wide rise in the ten-year yield.
Private companies in the United States succeeded in adding about 324 thousand jobs in July, outperforming market expectations by adding only 191 thousand jobs, and companies adding jobs by about 497 in June.
This data shows the continuation of the tightening conditions in the US labor market, which is expected to force the Federal Reserve to continue the path of monetary tightening and raise interest rates during next month’s meeting.
American interest
Following that data, futures pricing for the possibility of raising US interest rates increased by 25 basis points during the September 20 meeting, from 15% to 17.5%, and futures pricing for the possibility of keeping US interest rates unchanged from 85% to 82.5%.
job data
In order to re-price the above contracts, investors are awaiting, later today, the release of the monthly jobs report in the United States, which includes the hourly and the number of new jobs in the non-farm sectors during July.
Does the jobs report enhance the prospects for raising US interest rates in September?
The non-farm payrolls data will be released at 12:30 GMT. Expectations indicate that the US economy will add 205,000 new jobs in July, from adding 209,000 jobs in June, with the unemployment rate stable at 3.6%. The average per capita income will also be issued. Hourly forecast, for a rise of 0.3%, from a rise of 0.4% in June.
2023-08-04 13:12:00
#Dollar #4week #high #ahead #monthly #jobs #data #FXNEWSTODAY
