On Monday, the evergreen buck declined versus its counterparts on worries of an escalation in the US-China trade conflict, while a stronger UK currency and euro also put pressure on market sentiment…
Greenback dives as American jobs report tames rate hike bets
On Monday, the evergreen buck dived versus a currency basket right after the fresh American jobs report disclosed that while jobs surge remained firm, spurring risk appetite, wage surge speeded down, thus taming hopes for a faster tempo of rate lifts in 2018.
The US dollar index, gauging the American currency’s strength versus a group of six major rivals, hit 89.94, heading south 0.18% for the day.
On Friday, the Labor Department reported that the American economy generated 313,000 jobs in February, although average hourly earnings tacked on by 0.1% last month.
The firm jobs surge spurred global risk appetite, and the slowdown in wage surge dampened hopes for four rate lifts by the Fed in 2018, which is negative for the evergreen buck that tends to be more attractive to yield-seeking market participants when borrowing costs go up.
The common currency inched up, with EUR/USD soaring 0.18% being worth 1.2329.
Leaps in the common currency were held in check right after European Central Bank Governor Mario Draghi dared to downplay a move to cease the easing bias from the previous week’s rate statement and also issued a warning that growing protectionism threatened the outlook for surge in the euro zone.
The British pound also gained ground versus the US currency, with USD/GBP adding 0.17% being worth 1.3877.
Versus the Japanese yen, the evergreen buck declined, with USD/JPY sliding 0.24% hitting 106.54.
Demand for Japan’s currency was spurred amid worried over a soaring cronyism scandal closely connected with the Japanese prime minister as well as his wife involving the sale of public land.
The safe haven yen is prone to going up in times of market instability.
Additionally, the risk sensitive Australian as well as New Zealand dollars grew too, with AUD/USD soaring 0.19% reaching 0.7862 and NZD/USD rallying 0.43% being worth 0.7310.
On Monday, crypto assets stood still…
On Friday, the evergreen buck went down versus other currencies after weaker than anticipated inflation data because market participants worried that the key US bank could decelerate rate lifts…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…