U.S. Dollar Approach 10-Week High Against Japanese Yen
April 4, 2014 8:24 am
The dollar exchanged close to the topmost performing mark in 10 weeks versus the yen before the U.S. is projected to report the fastest jobs development in four months.
The U.S. currency marched toward for a third weekly surge versus the yen and euro as investors weighed the timing for the Federal Reserve’s first interest rate hike since 2006. The euro dived to the weakest in a month versus the greenback yesterday after European Central Bank President Mario Draghi empowered his pledge that policy makers were ready to take further moves to counter any risk of deflation. The New Zealand Dollar was set for the largest weekly pullback in two months.
“Markets have priced in a fairly robust payrolls number, on expectations of a rebound from the poor results caused by the weather,” said Ken Takahashi, an assistant vice president of global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “With the Fed moving toward an exit from stimulus, the dollar should move higher in the medium to longer term.”
The dollar was slightly change at 103.91 yen as of 10:45 a.m. in Tokyo from yesterday, when it reached 104.11, the peak position since January 23. The euro purchased $1.3716 from $1.3720 yesterday, when it slide lower to $1.3698, the weakest since February 28. The single currency relinquished 0.1 percent to 142.52 yen.
The greenback is marching toward for a 1.1 percent increase versus the yen and a 0.3 percent surge versus the euro this week. The euro has bolstered 0.8 percent versus its Japanese counterpart.
New Zealand’s currency inched up 0.1 percent to 85.49 U.S. cents, trimming down its retreat this week to 1.3 percent. That would be the largest since a 1.6 percent sag down in the period through January 31.
Jobs Development
Labor Department data today will possibly display U.S. employers provided an extra 200,000 positions last month, the largest hike since November, according to the median estimate of economists in a Bloomberg News poll.
The jobless rate may have sagged down to 6.6 percent from 6.7 percent previously.
“We believe that payrolls will meet, if not exceed, the market’s expectations, providing a further boost to the dollar,”Kathy Lien, managing director at BK Asset Management, wrote in a report. Six of eight labor-market indicators, including an advance in the employment component of the Institute for Supply Management’s non-manufacturing index, “argue for stronger” payrolls data today, Lien wrote.
Fed Chair Janet Yellen stated last month the nation’s zero to 0.25 percent interest rate could bolster in “around six months” after the central bank exits quantitative easing.
he dollar gave up 0.9 percent in the past three months versus a basket of nine other developed-nation currencies recorded by Bloomberg Correlation-Weighted Indexes. The yen and the euro bolstered 0.1 percent each.
Quantitative Easing Discussed
The ECB’s Draghi declared yesterday that European policy makers “do not exclude further monetary policy easing,” after the central bank maintain its refinancing rate at a record-low 0.25 percent. A discussion about quantitative easing, or large-scale purchases of assets intended to boost financial values and economic progress higher, wasn’t neglected, Draghi stated at a press conference in Frankfurt yesterday.
“Given ECB President Draghi’s more dovish remarks it appears that the probability of additional monetary policy action has been rising,” Manuel Oliveri, a foreign-exchange strategist at Credit Agricole Corporate & Investment Bank, wrote in an electronic mailed note to clients today. “We remain of the view that being long the EUR from the current levels offers little risk reward.”
The material has been provided by InstaForex Company – www.instaforex.com
The dollar exchanged close to the topmost performing mark in 10 weeks versus the yen before the U.S. is projected to report the fastest jobs development in four months.
The U.S. currency marched toward for a third weekly surge versus the yen and euro as investors weighed the timing for the Federal Reserve’s first interest rate hike since 2006. The euro dived to the weakest in a month versus the greenback yesterday after European Central Bank President Mario Draghi empowered his pledge that policy makers were ready to take further moves to counter any risk of deflation. The New Zealand Dollar was set for the largest weekly pullback in two months.
“Markets have priced in a fairly robust payrolls number, on expectations of a rebound from the poor results caused by the weather,” said Ken Takahashi, an assistant vice president of global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “With the Fed moving toward an exit from stimulus, the dollar should move higher in the medium to longer term.”
The dollar was slightly change at 103.91 yen as of 10:45 a.m. in Tokyo from yesterday, when it reached 104.11, the peak position since January 23. The euro purchased $1.3716 from $1.3720 yesterday, when it slide lower to $1.3698, the weakest since February 28. The single currency relinquished 0.1 percent to 142.52 yen.
The greenback is marching toward for a 1.1 percent increase versus the yen and a 0.3 percent surge versus the euro this week. The euro has bolstered 0.8 percent versus its Japanese counterpart.
New Zealand’s currency inched up 0.1 percent to 85.49 U.S. cents, trimming down its retreat this week to 1.3 percent. That would be the largest since a 1.6 percent sag down in the period through January 31.
Jobs Development
Labor Department data today will possibly display U.S. employers provided an extra 200,000 positions last month, the largest hike since November, according to the median estimate of economists in a Bloomberg News poll.
The jobless rate may have sagged down to 6.6 percent from 6.7 percent previously.
“We believe that payrolls will meet, if not exceed, the market’s expectations, providing a further boost to the dollar,”Kathy Lien, managing director at BK Asset Management, wrote in a report. Six of eight labor-market indicators, including an advance in the employment component of the Institute for Supply Management’s non-manufacturing index, “argue for stronger” payrolls data today, Lien wrote.
Fed Chair Janet Yellen stated last month the nation’s zero to 0.25 percent interest rate could bolster in “around six months” after the central bank exits quantitative easing.
he dollar gave up 0.9 percent in the past three months versus a basket of nine other developed-nation currencies recorded by Bloomberg Correlation-Weighted Indexes. The yen and the euro bolstered 0.1 percent each.
Quantitative Easing Discussed
The ECB’s Draghi declared yesterday that European policy makers “do not exclude further monetary policy easing,” after the central bank maintain its refinancing rate at a record-low 0.25 percent. A discussion about quantitative easing, or large-scale purchases of assets intended to boost financial values and economic progress higher, wasn’t neglected, Draghi stated at a press conference in Frankfurt yesterday.
“Given ECB President Draghi’s more dovish remarks it appears that the probability of additional monetary policy action has been rising,” Manuel Oliveri, a foreign-exchange strategist at Credit Agricole Corporate & Investment Bank, wrote in an electronic mailed note to clients today. “We remain of the view that being long the EUR from the current levels offers little risk reward.”
The material has been provided by InstaForex Company – www.instaforex.com
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