FOREX-Dollar holds advantage as economic data point to more gains

Published 05/04/2021, 01:50
Updated 05/04/2021, 01:54
© Reuters.
DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* U.S. nonfarm payrolls supports dollar bulls
* Market activity low due to Easter holidays
* Next focus shifts to U.S. ISM services data

By Stanley White
TOKYO, April 5 (Reuters) - The dollar was poised to extend
gains against major currencies on Monday after the U.S. jobs
report at the end of last week showed the nation's labour market
is recovering from the impact of the coronavirus shock.
The focus now shifts to data on the U.S. services sector due
later on Monday, which is forecast to show an acceleration in
activity that could further encourage dollar bulls.
In January-March the dollar posted its best quarter against
major currencies in almost three years thanks to an improving
U.S. economy and rising Treasury yields.
The U.S. currency is likely to build on those gains as
investors look for ways to bet on a global economic recovery
from the worst of the coronavirus pandemic, analysts said.
"I thought there would be a correction lower in the dollar,
but that didn't happen," said Masafumi Yamamoto, chief currency
strategist at Mizuho Securities.
"The dollar's upward trend is very strong. In the new
quarter perhaps the best thing for investors to do is to just
follow this trend."
The dollar was last quoted at 110.63yen JPY=D3 , not far
from its strongest level in a year.
Against the euro EUR=D3 , the dollar traded at $1.1765,
which is close to a five-month high.
The British pound GBP=D3 held steady at $1.3824.
The dollar edged up to 0.9423 Swiss franc CHF=EBS .
The U.S. economy created more jobs than expected in March,
data showed on Friday. However, there was scant reaction in
currencies as most major stock and bond markets were closed for
Easter holidays. Trading could be subdued again on Monday in Asia as
financial markets in Australia, China, and Hong Kong are also
closed, although the bias is for the dollar to strengthen
further, analysts said.
A survey from the Institute for Supply Management due later
on Monday is expected to show U.S. non-manufacturing activity
expanded at a faster rate in March, which could underpin the
greenback on its forward march.
The dollar index =USD against a basket of six major
currencies was little changed at 92.973,
Dollar short positions in the currency market fell last week
to the lowest since June last year, U.S. Commodity Futures
Trading Commision data showed - another positive sign for the
greenback. Elsewhere, the Australian dollar AUD=D3 edged up to
$0.7616, while the New Zealand dollar NZD=D3 bought $0.7028.
========================================================
Currency bid prices at 0025 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1765 $1.1752 +0.11% -3.70% +1.1768 +1.1752
Dollar/Yen JPY=D3 110.6300 110.6700 +0.00% +7.15% +110.7400 +110.6700
Euro/Yen EURJPY= 130.17 130.13 +0.03% +2.54% +130.2500 +130.1300
Dollar/Swiss CHF=EBS 0.9423 0.9408 +0.19% +6.54% +0.9430 +0.9421
Sterling/Dollar GBP=D3 1.3824 1.3825 -0.04% +1.16% +1.3830 +1.3820
Dollar/Canadian CAD=D3 1.2568 1.2585 -0.13% -1.30% +1.2586 +1.2566
Aussie/Dollar AUD=D3 0.7616 0.7591 +0.34% -0.99% +0.7620 +0.7607
NZ NZD=D3 0.7028 0.7017 +0.16% -2.13% +0.7031 +0.7023
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX

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World FX rates https://tmsnrt.rs/2RBWI5E
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