{"id":113760,"date":"2021-05-07T02:51:03","date_gmt":"2021-05-07T02:51:03","guid":{"rendered":"https:\/\/fin2me.com\/?p=113760"},"modified":"2021-05-07T02:51:03","modified_gmt":"2021-05-07T02:51:03","slug":"dollar-on-backfoot-ahead-of-u-s-jobs-data","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/dollar-on-backfoot-ahead-of-u-s-jobs-data\/","title":{"rendered":"Dollar on backfoot ahead of U.S. jobs data"},"content":{"rendered":"
TOKYO (Reuters) – The dollar stayed under modest pressure on Friday ahead of a key U.S. jobs report that could cement expectations of a strong economic recovery and fan investor appetite for stocks, higher-yielding currencies and commodities.<\/p> The dollar\u2019s index against six other major currencies stood near its lowest level so far this week, at 90.868, having lost about 0.4% overnight.<\/p>\n As the dollar is softer against most currencies, the euro outshone many others, having gained 0.5% on Thursday to trade at $1.2063.<\/p>\n Against the yen, the dollar dipped to 109.05 yen, almost flat so far on the week as its rebound since late April has lost steam.<\/p>\n U.S. payrolls data due at 1230 GMT will likely confirm the economy\u2019s solid path to recovery from the pandemic, analysts said. Economists expect 978,000 new U.S. jobs for April, according to a Reuters poll.<\/p>\n Ahead of the closely-watched report, data showed on Thursday the number of Americans filing new claims for unemployment benefits fell below 500,000 last week for the first since the COVID-19 pandemic started more than a year ago.<\/p>\n Although signs of a strong job recovery could stoke inflation worries, so far most Federal Reserve policymakers have downplayed the risks of higher prices, a sign stimulus tapering will not be on agenda any time soon.<\/p>\n \u201cMarkets are convinced that the Fed won\u2019t make actions until the U.S. will see a full employment. That means positive environment for risk assets such as stocks,\u201d said Bart Wakabayashi, Tokyo Branch Manager of State Street.<\/p>\n \u201cI often hear people say they are fine with the idea of selling the dollar. The question is becoming, what you should buy against the dollar?\u201d<\/p>\n The Canadian dollar rose almost 1% overnight to a 3-1\/2-year high of C$1.21455 and last stood at C$1.2157.<\/p>\n The currency has been bolstered by oil price gains and the Bank of Canada\u2019s recent shift to more hawkish guidance.<\/p>\n The Chinese yuan also held firm near a two-month high, standing at 6.4655 per dollar in offshore trade, just short of its April 30 peak of 6.4613.<\/p>\n The British pound traded at $1.3896, unable to hold on to gains made on Thursday after the Bank of England slowed the pace of its trillion dollar bond-purchasing programme.<\/p>\n The decision was largely expected and the BoE stressed it was not reversing its stimulus.<\/p>\n The British currency could be capped for now by uncertainties over Scottish election that could trigger a showdown with British Prime Minister Boris Johnson over its independence movement.<\/p>\n Although the polls already closed at 2100 GMT, votes will not be counted until Friday morning due to the coronavirus pandemic.<\/p>\n Just over a third of the results will be announced on Friday and the remainder will be announced on Saturday.<\/p>\n Elsewhere, ether hit a fresh record high of $3,610.04 and last traded at $3,473.51.<\/p>\n Bitcoin fetched $56,541, trapped in a range between $53,000 and $59,000 over the past week.<\/p>\n