U.S. Dollar Weakens As Investors Await Jobs Report
December 07 2023 - 2:37AM
RTTF2
The U.S. dollar lost ground against its major counterparts in
the European session on Thursday, as investors brace for the U.S.
jobs report due Friday for important clues on the Fed's rate
trajectory.
Economists currently expect U.S. employment to increase by
185,000 jobs in November after an increase of 150,000 jobs in
October. The jobless rate is expected to hold at 3.9 percent.
As inflation concerns ease, investors are pinning hopes that the
Federal Reserve will cut interest rates as early as the first
quarter next year.
On Wednesday, data from ADP showed a gradual cooling in the
labor market.
U.S. private payrolls rose by 103,000 jobs last month, below
expectations of 130,000 jobs. Data for October was revised lower to
show an increase of 106,000 jobs.
The greenback dropped to 0.8729 against the franc, 1.2592
against the pound and 1.0784 against the euro, reversing from an
early 2-day high of 0.8762, near 2-week high of 1.2544 and more
than a 3-week high of 1.0755, respectively. The next possible
support for the greenback is seen around 0.855 against the franc,
1.31 against the pound and 1.10 against the euro.
The greenback fell to 1.3583 against the loonie, 0.6153 against
the kiwi and 0.6572 against the aussie, from an early 1-week high
of 1.3607, 9-day high of 0.6113 and a fresh 2-week high of 0.6525,
respectively. The greenback is seen finding support around 1.33
against the loonie, 0.63 against the kiwi and 0.68 against the
aussie.
The greenback touched 144.54 against the yen, its lowest level
since September 1. The greenback is poised to challenge support
around the 139.00 level.
Looking ahead, U.S. weekly jobless claims for the week ended
December 2 and wholesale inventories for October, as well as Canada
building permits for the same month will be released in the New
York session.
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