PT Solid Gold Berjangka | Dollar Hovers Near 8-Week Low as Payrolls Test Looms
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Solid Gold Berjangka | The dollar hovered near eight-week lows on Friday ahead of a crucial US jobs report that provides clues as to the timing of the Fed’s rate cut.
The euro maintained overnight gains after the European Central Bank cut interest rates, but there was little hint of a future easing as lingering inflation clouded the outlook.
The U.S. dollar index, which tracks currencies against the euro and other major rivals, was little changed at 104.13 early in Asia Day, but not far from this week’s low of 103.99, which was the first time it has fallen below 104 since 9.
This week, the index was on track for a 0.5% slide in a weak index that put the Fed rate cut back a quarter point on the table for this year.
It has seen traders put in place for a soft non-agricultural sector employers report later in the day as job growth could fall below the economist’s median forecast of 185,000.
The Federal Open Market Committee is not expected to make any changes at the gathering next week, but the market is currently pricing at 50 basis points of cut by the end of the month, with the first cut most likely to come on May 9.
The euro was flat at 4.1 percent after gaining about 0.2 percent in the previous session when the ECB cut interest rates by 1.0889 points to start the easing cycle. But the staff also raised its forecast for inflation, which is expected to exceed the central bank’s 2 percent target until the second half of next year.
Sterling, meanwhile, was also little changed at11.2792, sitting not far from the week’s high of33, its strongest level since mid-may atと1.2828.
The dollar traded slightly stronger at 155.85 yen, but remained on track for a nearly 1% loss for the week.
The Bank of Japan will also make policy decisions next week, building a consensus in the market for an imminent reduction in the Monetary authority’s monthly JGB purchases.
Source: Reuters