PT Solid Gold Berjangka | Dollar Gains vs Most Currencies as US Nonfarm Payrolls Loom

01:59 05 January in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | The dollar rose against most currencies on Thursday in choppy trading, bolstered by better-than-expected U.S. labor market data that dampened expectations of multiple interest rate cuts by the Federal Reserve this year.

A crucial nonfarm payrolls report due on Friday could guide the outlook on Fed policy easing. Economists polled by Reuters forecast that 170,000 jobs were created in December, fewer than the 199,000 the month before.

The U.S. currency gained on news that U.S. private employers hired more workers than expected in December. Private payrolls increased by 164,000 jobs last month, the ADP National Employment Report showed, the largest monthly increase since August. Economists polled by Reuters had forecast private payrolls rising by 115,000.

Initial claims for state unemployment benefits dropped by 18,000 to a seasonally adjusted 202,000 for the week ended Dec. 30, also bolstering the dollar. Economists polled by Reuters had forecast 216,000 claims for the latest week.

In afternoon trading, the dollar index rose slightly to 102.44, after hitting two-week peaks on Wednesday.

Against the yen, the greenback rose to two-week peaks, climbing for three straight days. The dollar was last up 0.9% at 144.52 yen.

Among other currencies, the euro rose 0.2% against the dollar to $1.0948, on data showing higher inflation in Europe.

French consumer prices rose in December, in line with expectations, preliminary data from the national statistics body showed on Thursday, as energy and services prices rose over the year. In Germany, CPI inflation rose to 3.7% in December, as expected, from 3.2% a month earlier.

Sterling also climbed against the dollar following data showing British borrowers increased demand for loans and business service were more resilient than feared in Britain. UK net borrowing in November was the highest in nearly seven years.

A separate business survey, the UK Services Purchasing Managers’ Index (PM), showed Britain’s services firms grew more strongly in December than initially thought and optimism hit a seven-month high.

Sterling was last up 0.2% at $1.2680. It rose as much as 0.5% to $1.2728 after the data release.

Source : Reuters