Dollar Strengthens Ahead Of U.S. Jobs Data
July 04 2019 - 11:25PM
RTTF2
The U.S. dollar climbed against its major counterparts in the
Asian session on Friday, as investors awaited today's jobs report
that would help determine about the Fed rate cut later this
month.
U.S. employment is expected to increase by 160,000 jobs in June
after an increase of 75,000 jobs in May. The jobless rate is
expected to hold at 3.6 percent.
The report could determine if the Federal Reserve cuts rates
later this month to shore up the world's largest economy as trade
tensions escalate.
The ADP employment data, seen as a precursor to jobs data,
missed expectations, fueling expectations that the Fed will start
cutting rates soon.
On the trade front, White House economic adviser Larry Kudlow
told reporters Thursday that top-level trade officials 'will be
very involved now' in restarting discussions with their Chinese
counterparts next week.
The greenback climbed to a 3-day high of 107.96 against the yen,
from a low of 107.76 hit at 5:00 pm ET. The next possible
resistance for the greenback is seen around the 111.00 mark.
The greenback appreciated to 0.9864 against the franc, after
falling to a 2-day low of 0.9843 at 5:45 pm ET. Continuation of the
greenback's uptrend may see it challenging resistance around the
1.00 region.
Reversing from a low of 1.1288 set at 6:45 pm ET, the greenback
reversed direction and rose to a 2-day high of 1.1272. If the
greenback extends rise, 1.11 is possibly seen as its next
resistance level.
The greenback strengthened to 2-day highs of 0.6672 against the
kiwi and 0.7014 against the aussie, from Thursday's closing values
of 0.6687 and 0.7029, respectively. The greenback is likely to face
resistance around 0.64 against the kiwi and 0.69 against the
aussie.
The greenback that ended yesterday's deals at 1.3046 against the
loonie edged higher to 1.3067. On the upside, 1.33 is possibly seen
as the next resistance for the greenback.
On the flip side, the greenback dropped to 1.2588 against the
pound, from a high of 1.2571 seen at 5:00 pm ET. Next key support
for the greenback is seen around the 1.27 area.
Looking ahead, U.K. Halifax house price index for June will be
out in the European session.
The U.S and Canadian jobs data and Canada Ivey PMI, all for
June, are due in the New York session.
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