U.S. Dollar Achieves Two-Month High Versus Japanese Yen Ahead of Payrolls
April 3, 2014 7:45 am
The dollar rallied to a two-month high versus the yen before U.S. data projection to show services industries and non-farm payrolls bolstered, supporting the case for the Federal Reserve to trim down stimulus.
The Bloomberg Dollar Spot Index, which records the greenback versus 10 major currencies, bolstered yesterday to the topmost close in one week after a private report revealed that American firms boosted hiring. The euro was down against most major counterparts before the European Central Bank sets policy today. International Monetary Fund Managing Director Christine Lagarde stated yesterday more financial easing is needed in the currency bloc. Australia’s dollar is in almost a four-month high.
“There is high expectation for the payrolls number after a strong reading from the ADP report,” said Koji Iwata, a vice president of foreign-exchange trading at Mizuho Bank Ltd. in New York. “The dollar is being broadly bid.”
The dollar exchanged at 103.98 yen as of 10:30 a.m. in Tokyo, after reaching 104.01, the topmost mark since January 23. The U.S. currency was slightly moved at $1.3766 per euro from yesterday, when it boosted 0.2 percent. The 18-nation currency purchased 143.12 yen from 143.01 in New York. The Australian dollar fetched 92.22 U.S. cents after achieving 93.04 on April 1, the best performing mark since November 21.
The Bloomberg Dollar Spot Index was moved a bit at 1,017.90 from yesterday, set for the peak mark close since March 21.
U.S. Employment
U.S. firms boosted payrolls by 191,000 last month, up from a revised 178,000, numbers from the ADP Research Institute in Roseland, New Jersey, displayed yesterday.
The Labor Department will possibly declare tomorrow employers provided an extra 200,000 jobs last month, against 175,000 in February, according to the median estimate of economists surveyed by Bloomberg News. Economists in a separate Bloomberg survey projected the Institute for Supply Management’s non-manufacturing index due today bolstered to 53.5 in March from 51.6 in the past month.
“There’s certainly nothing that came out from ADP that’s inconsistent with expectation of a good jobs report on Friday,” Robert Sinche, global strategist at Stamford, Connecticut-based Pierpont Securities LLC, said of the payrolls report. “The most interesting thing that’s going on is dollar-yen’s going to creep higher — 105 is a huge psychological level.”
The Fed has been slashing down its monthly bond purchases, to $55 billion from $85 billion last year, and central-bank Chair Janet Yellen stated last month borrowing costs could increase in “around six months” after it ends purchasing debt.
Unusual Methods
“There is the emerging risk of what I call ‘low-inflation,’ particularly in the euro area,” which could suppress demand and output, IMF’s Lagarde said yesterday in Washington. “More monetary easing, including through unconventional measures, is needed in the” 18-country euro region “to raise the prospects of achieving the European Central Bank’s price-stability objective.”
ECB policy makers will maintain their primary refinancing rate at a record 0.25 percent today, according to all except three of 57 economists polled by Bloomberg. One sees a trim to 0.1 percent, while two call for a slash down to 0.15 percent.
The euro has declined about 0.7 percent against the dollar since ECB President Mario Draghi said March 13 the exchange rate is “increasingly relevant in our assessment of price stability.”
“The euro is usually volatile at the ECB meetings particularly during President Draghi’s press conference,” said Mizuho’s Iwata. “I wouldn’t be surprised if the ECB takes action given that inflation in the euro area has been weak and policy makers have been taking note of the risk of deflation.”
In Australia, retail sales rallied 0.2 percent in February from the past month, when it surged 1.2 percent, a government report displayed today. The median estimate was for a 0.3 percent hike.
Reserve Bank of Australia Governor Glenn Stevens will speak in Brisbane today.
The material has been provided by InstaForex Company – www.instaforex.com
The dollar rallied to a two-month high versus the yen before U.S. data projection to show services industries and non-farm payrolls bolstered, supporting the case for the Federal Reserve to trim down stimulus.
The Bloomberg Dollar Spot Index, which records the greenback versus 10 major currencies, bolstered yesterday to the topmost close in one week after a private report revealed that American firms boosted hiring. The euro was down against most major counterparts before the European Central Bank sets policy today. International Monetary Fund Managing Director Christine Lagarde stated yesterday more financial easing is needed in the currency bloc. Australia’s dollar is in almost a four-month high.
“There is high expectation for the payrolls number after a strong reading from the ADP report,” said Koji Iwata, a vice president of foreign-exchange trading at Mizuho Bank Ltd. in New York. “The dollar is being broadly bid.”
The dollar exchanged at 103.98 yen as of 10:30 a.m. in Tokyo, after reaching 104.01, the topmost mark since January 23. The U.S. currency was slightly moved at $1.3766 per euro from yesterday, when it boosted 0.2 percent. The 18-nation currency purchased 143.12 yen from 143.01 in New York. The Australian dollar fetched 92.22 U.S. cents after achieving 93.04 on April 1, the best performing mark since November 21.
The Bloomberg Dollar Spot Index was moved a bit at 1,017.90 from yesterday, set for the peak mark close since March 21.
U.S. Employment
U.S. firms boosted payrolls by 191,000 last month, up from a revised 178,000, numbers from the ADP Research Institute in Roseland, New Jersey, displayed yesterday.
The Labor Department will possibly declare tomorrow employers provided an extra 200,000 jobs last month, against 175,000 in February, according to the median estimate of economists surveyed by Bloomberg News. Economists in a separate Bloomberg survey projected the Institute for Supply Management’s non-manufacturing index due today bolstered to 53.5 in March from 51.6 in the past month.
“There’s certainly nothing that came out from ADP that’s inconsistent with expectation of a good jobs report on Friday,” Robert Sinche, global strategist at Stamford, Connecticut-based Pierpont Securities LLC, said of the payrolls report. “The most interesting thing that’s going on is dollar-yen’s going to creep higher — 105 is a huge psychological level.”
The Fed has been slashing down its monthly bond purchases, to $55 billion from $85 billion last year, and central-bank Chair Janet Yellen stated last month borrowing costs could increase in “around six months” after it ends purchasing debt.
Unusual Methods
“There is the emerging risk of what I call ‘low-inflation,’ particularly in the euro area,” which could suppress demand and output, IMF’s Lagarde said yesterday in Washington. “More monetary easing, including through unconventional measures, is needed in the” 18-country euro region “to raise the prospects of achieving the European Central Bank’s price-stability objective.”
ECB policy makers will maintain their primary refinancing rate at a record 0.25 percent today, according to all except three of 57 economists polled by Bloomberg. One sees a trim to 0.1 percent, while two call for a slash down to 0.15 percent.
The euro has declined about 0.7 percent against the dollar since ECB President Mario Draghi said March 13 the exchange rate is “increasingly relevant in our assessment of price stability.”
“The euro is usually volatile at the ECB meetings particularly during President Draghi’s press conference,” said Mizuho’s Iwata. “I wouldn’t be surprised if the ECB takes action given that inflation in the euro area has been weak and policy makers have been taking note of the risk of deflation.”
In Australia, retail sales rallied 0.2 percent in February from the past month, when it surged 1.2 percent, a government report displayed today. The median estimate was for a 0.3 percent hike.
Reserve Bank of Australia Governor Glenn Stevens will speak in Brisbane today.
The material has been provided by InstaForex Company – www.instaforex.com
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