Dollar retreats versus most currencies; euro nears 3-year high

By Kitco News / January 04, 2018 / www.kitco.com / Article Link

NEW YORK (Reuters) - The dollar fell on Thursday, failing to hold the previous day’s gains on the back of upbeat U.S. data, as the euro resumed a rally that has taken it near its highest level in three years.

A stronger-than-expected U.S. private-sector jobs report briefly helped the dollar pare losses versus the euro and extend gains against the yen. But those moves were short-lived.

“The market quickly faded the mini-rally in the dollar as the trend gave way to what we have been seeing for the past several weeks, which is dollar weakness,” said Sireen Harajli, currency strategist at Mizuho Corporate Bank in New York.

She added that while the ADP number was better than forecast and will probably lead to high expectations for the U.S. non-farm payrolls report on Friday, the market does not seem to be willing to push the dollar higher.

U.S. private employers added 250,000 jobs in December, data from ADP Research Institute showed, the biggest monthly increase since March. Economists surveyed by Reuters had forecast a gain of 190,000 jobs.

With ADP out of the way, investors are now focused on Friday’s U.S. non-farm payrolls report, which is expected to show job gains of 190,000 for December.

James Chen, head of FX research at Forex.com in Bedminster, New Jersey said his firm’s U.S. payrolls forecast is between 200,000-220,000 given the strong employment data in other economic indicators.

“Any result falling within or above this range is likely to give the U.S. dollar a boost, as it would help confirm the Fed’s optimistic outlook for the economy and the path to higher interest rates in 2018,” Chen said.

The dollar index, which measures the currency against a basket of six major rivals .DXY, had slipped to its lowest since Sept. 20 on Tuesday, as optimism about the euro zone economy drove the euro above $1.20 for the first time in 3-1/2 months. The index was last down 0.3 percent at 91.878.

The dollar had bounced on Wednesday after strong manufacturing and construction data, as well as somewhat hawkish Federal Reserve minutes.

The dollar rose against the yen, however, up 0.2 percent at 112.78 yen JPY= on strong risk appetite across markets.

After earlier hitting a low of $1.2005, the euro recovered to trade as high as $1.2089 EUR=. The euro last changed hands at $1.2068, up 0.5 percent

Bitcoin, meanwhile, pared losses in late trading, down just 0.8 percent at $15,007 on the Bitstamp exchange BTC=BTSP. It has lost more than a quarter of its value since hitting record highs in mid-December.

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Currency bid prices at 2:54PM (1954 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.2069 $1.2012 +0.47% +0.61% +1.2089 +1.2005

Dollar/Yen JPY= 112.7500 112.4900 +0.23% +0.07% +112.8600 +112.4900

Euro/Yen EURJPY= 136.10 135.15 +0.70% +0.68% +136.3600 +135.1400

Dollar/Swiss CHF= 0.9746 0.9769 -0.24% +0.03% +0.9780 +0.9737

Sterling/Dollar GBP= 1.3552 1.3514 +0.28% +0.30% +1.3560 +1.3506

Dollar/Canadian CAD= 1.2495 1.2531 -0.29% -0.65% +1.2555 +1.2488

Australian/Doll AUD= 0.7860 0.7835 +0.32% +0.76% +0.7865 +0.7815

Euro/Swiss EURCHF= 1.1764 1.1737 +0.23% +0.64% +1.1775 +1.1734

Euro/Sterling EURGBP= 0.8903 0.8890 +0.15% +0.23% +0.8924 +0.8880

NZ NZD= 0.7159 0.7090 +0.97% +1.03% +0.7160 +0.7075

Dollar/Dollar

Dollar/Norway NOK= 8.0570 8.1023 -0.56% -1.83% +8.1154 +8.0576

Euro/Norway EURNOK= 9.7262 9.7363 -0.10% -1.24% +9.7761 +9.7284

Dollar/Sweden SEK= 8.1305 8.1764 -0.10% -0.87% +8.1842 +8.1266

Euro/Sweden EURSEK= 9.8153 9.8248 -0.10% -0.24% +9.8337 +9.8064

Reporting by Gertrude Chavez-Dreyfuss; Editing by Meredith Mazzilli and Lisa Shumaker

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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