FOREX-Dollar licks wounds after payrolls shock, focus turns to inflation

Published 10/05/2021, 01:37
Updated 10/05/2021, 01:42
© Reuters.
DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, May 10 (Reuters) - The dollar languished near a more
than two-month low versus major peers on Monday as investors
continued to assess the implications for monetary policy of a
disappointing U.S. employment report, ahead of inflation data
this week.
The U.S. created only a little more than a quarter of the
jobs that economists had forecast last month and the
unemployment rate unexpectedly ticked higher, pouring cold water
on speculation the pandemic recovery could spark faster
inflation that the Federal Reserve anticipates. The dollar index =USD , which measures the greenback
against six rivals, stood at 90.178, after dipping as low as
90.128 for the first time since Feb. 26.
Notably, the British pound GBP=D3 rallied 0.3%, rising as
high as $1.4036 for the first time since Feb. 25, despite
Scotland's leader saying another referendum on independence was
inevitable after her party's resounding election victory.
"The USD's choppy downtrend can continue this week,"
Commonwealth Bank of Australia strategist Kim Mundy wrote in a
client note, predicting a break above $1.22 for the euro.
"The unexpected slow recovery in the U.S. labour market
reinforces the FOMC's patient approach to monetary policy,"
while "the improving global economic outlook is a medium-term
weight on the USD."
The euro EUR=EBS rose 0.1% to $1.2172, earlier touching
the highest since Feb. 26 at $1.2177.
The dollar was little changed at 108.57 yen JPY=EBS , not
far from its lowest since April 27.
The Aussie dollar ticked 0.1% higher to $0.78535, close to
Friday's more-than-two-month high of 0.7863.
Canada's loonie CAD=D3 rallied to a fresh 3-1/2-year high
of $1.2111.
In cryptocurrencies, ether ETH=BTSP changed hands at
$3,918.78 after reaching a record $3,985 on Sunday. The
second-biggest digital token has rallied 41% so far this month.
Bigger rival bitcoin BTC=BTSP remained stuck around
$58,000, consolidating after retreating as low as $47,004.20 on
April 25 following its surge to a record $64,895.22 in the
middle of that month.
Meanwhile, no. 4 virtual currency dogecoin languished around
$0.56 after losing more than a third of its price on Sunday,
when Elon Musk called the token a "hustle" during his guest-host
spot on the "Saturday Night Live" comedy sketch TV show.
"Musk is probably happy to jump on the joke of what is a
meme(coin), but investors are probably feeling real pain now,"
said Justin d'Anethan, Hong Kong-based head of Exchange Sales at
Diginex, a digital asset exchange.
"The supply is essentially unlimited (for dogecoin), and so
unsustainable long-term. It's a question of who will sell first
and who will be left holding the bags."

========================================================
Currency bid prices at 0014 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2167 $1.2163 +0.04% -0.41% +1.2177 +1.2150
Dollar/Yen JPY=EBS 108.6920 108.6000 +0.08% +5.22% +108.6970 +108.4800
Euro/Yen S>
Dollar/Swiss CHF=EBS 0.9006 0.9005 -0.02% +1.76% +0.9010 +0.9001
Sterling/Dollar GBP=D3 1.4035 1.3989 +0.34% +2.74% +1.4043 +1.3984
Dollar/Canadian CAD=D3 1.2114 1.2122 -0.05% -4.85% +1.2129 +1.2111
Aussie/Dollar AUD=D3 0.7859 0.7846 +0.18% +2.18% +0.7861 +0.7846
NZ NZD=D3 0.7293 0.7281 +0.21% +1.60% +0.7297 +0.7281
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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