FOREX-Dollar nurses losses as U.S. economic doubts undercut rally

Published 08/02/2021, 01:22
Updated 08/02/2021, 01:24
© Reuters.
DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Jobs data takes shine off dollar rebound
* Investors looking to U.S. CPI, timing of stimulus
* Ethereum falls in spot market as traders eye futures debut

By Stanley White
TOKYO, Feb 8 (Reuters) - The dollar nursed losses against
most currencies on Monday as disappointing U.S. jobs data caused
some investors to scale back bets on a rebound in the greenback.
The euro held gains versus the dollar but faces a test later
on Monday with data that is expected to show German industrial
output growth slowed at the end of last year.
Speculators have been reducing short positions in the
dollar, but some analysts say better U.S. economic data and
continued progress in fighting the coronavirus pandemic will be
needed for further dollar gains.
"Soft non-farm payrolls has really pulled the ladder out
from under the dollar," said Yukio Ishizuki, foreign exchange
strategist at Daiwa Securities.
"Now the markets are questioning whether the dollar can rise
any further. A lot depends on the coronavirus, but we also need
to know when U.S. fiscal stimulus will pass."
Against the euro EUR=D3 , the dollar traded at $1.2048
after a 0.7% slump on Friday.
The British pound GBP=D3 bought $1.3736, close to an
almost three-year high.
The dollar was quoted at 105.38 yen JPY=D3 , having pulled
back from a three-month high reached on Friday.
The U.S. economy created fewer jobs than expected in January
while job losses the previous month were deeper than initially
reported, data at the end of last week showed. The release of U.S. consumer prices and consumer sentiment
later this week will help determine whether a recent rise in
inflation expectations and Treasury yields was justified.
Any disappointing numbers from either report could knock the
dollar lower, some analysts warn.
The dollar index =USD against a basket of six major
currencies stood at 91.084, nursing a 0.6% loss from Friday.
Speculators' net bearish bets on the dollar fell to $29.95
billion for the week ended Feb. 2, compared with a net short
position of $33.81 billion for the previous week, according to
calculations by Reuters and U.S. Commodity Futures Trading
Commission data. In the cryptocurrency market, ethereum ETH=BTSP fell 3.88%
to $1,615, extending a pullback from a record high ahead of the
listing of ethereum futures on the Chicago Mercantile Exchange.
Bitcoin BTH=BTSP , the most popular cryptocurrency, fell
0.88% to $38,936.
Elsewhere, the Australian dollar AUD=D3 held steady at
$0.7678. Across the Tasman Sea, the New Zealand dollar NZD=D3
edged up to $0.7209.

========================================================
Currency bid prices at 2358 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2048 $1.2050 -0.02% -1.39% +1.2060 +1.2032
Dollar/Yen JPY=D3 105.3800 105.3550 +0.05% +2.05% +105.4250 +105.4050
Euro/Yen EURJPY= 126.98 126.93 +0.04% +0.04% +127.0600 +126.8700
Dollar/Swiss CHF=EBS 0.8990 0.8986 +0.00% +1.57% +0.8992 +0.8986
Sterling/Dollar GBP=D3 1.3736 1.3736 +0.00% +0.54% +1.3738 +1.3712
Dollar/Canadian CAD=D3 1.2759 1.2757 +0.02% +0.20% +1.2765 +1.2750
Aussie/Dollar AUD=D3 0.7678 0.7679 +0.03% -0.16% +0.7682 +0.7660
NZ NZD=D3 0.7209 0.7194 +0.25% +0.43% +0.7212 +0.7175
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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