Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. dollar drifts higher; traders eye non-farm payrolls

EconomyDec 02, 2021 20:25
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Australian dollars are seen in an illustration photo February 8, 2018. REUTERS/Daniel Munoz 2/2

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - The dollar edged higher on Thursday in choppy trading as risk appetite improved with higher U.S. stocks, although investors remained worried about the fast-spreading Omicron coronavirus variant and the speed at which the U.S. Federal Reserve will taper its asset purchases.

The U.S. currency's moves were limited though, as investors looked ahead to Friday's non-farm payrolls report for November.

"A really strong payrolls report as we're projecting could be another element to re-asserting the dollar," said Mazen Issa, senior FX strategist at TD Securities in New York.

Wall Street economists have estimated the U.S. economy created 550,000 new jobs last month, a Reuters poll showed.

In afternoon trading, the dollar index, which tracks the greenback against six major currencies, rose 0.1% to 96.131.

The index dropped last week after news of Omicron first emerged, although it remains close to a 16-month high of 96.938 hit last month.

On Thursday, the United States recorded its second case of the Omicron variant, but that has had muted impact on stocks and other risk assets.

"Anecdotal evidence seems to suggest that it may not be as severe as many people feared," said TD's Issa.

"If there's anything to take away from all of these is that the impact of the virus' successive waves tends to be less and less the longer it goes. Yes, it's still a risk, but vaccine makers are able to adjust to address it," he added.

The United States and Germany joined countries around the globe planning stricter COVID-19 restrictions on Thursday.

The dollar rose 0.4% versus the yen to 113.155.

The greenback earlier gained after U.S. data showing initial claims for state unemployment benefits rose 28,000 to a seasonally adjusted 222,000 for the week ended Nov. 27, lower than the forecast of 240,000.

Sterling, meanwhile, rose 0.2% to $1.3298, while the euro slipped 0.2% to $1.1294 .

Scotiabank, in a research note, highlighted the euro's allure as "a semi-haven currency." Since the Omicron story broke last week, the euro has gained 0.9% versus the dollar.

However, Scotia expects the euro to weaken toward the $1.10/11 zone given weak near-term economic and rates fundamentals, although virus uncertainty should keep it in a $1.12-$1.14 range for now.

Currency volatility trackers remain at multi-month highs, suggesting big moves could still be in store, analysts noted.

Traders are also awaiting clarity on how quickly the Fed will taper its asset purchases, as central banks around the world grapple with how to unwind stimulus amid soaring inflation.

Fed Chair Jerome Powell reiterated in testimony to Congress on Wednesday that he and fellow policymakers will consider swifter action at their Dec. 14-15 meeting.

Several Fed officials - Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, and San Francisco Fed President Mary Daly - on Thursday echoed Powell's comments.

Graphic: World FX rates https://graphics.reuters.com/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html

========================================================

Currency bid prices at 3:09 PM (2009 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 96.1240 96.0460 +0.09% 6.827% +96.1760 +95.8240

Euro/Dollar $1.1299 $1.1319 -0.18% -7.52% +$1.1347 +$1.1295

Dollar/Yen 113.1500 112.7600 +0.36% +9.52% +113.3200 +112.6300

Euro/Yen 127.84 127.64 +0.16% +0.72% +128.2200 +127.6500

Dollar/Swiss 0.9208 0.9205 +0.04% +4.09% +0.9221 +0.9180

Sterling/Dollar $1.3299 $1.3275 +0.19% -2.65% +$1.3333 +$1.3268

Dollar/Canadian 1.2808 1.2822 -0.11% +0.59% +1.2837 +1.2779

Aussie/Dollar $0.7091 $0.7108 -0.23% -7.81% +$0.7120 +$0.7084

Euro/Swiss 1.0405 1.0416 -0.11% -3.72% +1.0436 +1.0402

Euro/Sterling 0.8494 0.8523 -0.34% -4.96% +0.8529 +0.8490

NZ $0.6810 $0.6808 +0.02% -5.18% +$0.6831 +$0.6799

Dollar/Dollar

Dollar/Norway 9.0960 9.1060 +0.02% +6.06% +9.1140 +9.0590

Euro/Norway 10.2784 10.2819 -0.03% -1.80% +10.3296 +10.2510

Dollar/Sweden 9.0463 9.0795 -0.55% +10.37% +9.0944 +9.0269

Euro/Sweden 10.2219 10.2784 -0.55% +1.44% +10.2937 +10.2194

U.S. dollar drifts higher; traders eye non-farm payrolls
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Puk Pups
Puk Pups Dec 02, 2021 10:07
Saved. See Saved Items.
This comment has already been saved in your Saved Items
REUTERS know just one word OMICRON ! Repeating  it every second 24 .7
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email