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FOREX-Dollar set for worst week in a month; investors shrug off U.S. jobs data

Published 04/12/2020, 16:47
Updated 04/12/2020, 16:48
© Reuters.
USD/JPY
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* Dollar falls to new 2-1/2-year low
* Euro, Swiss franc headed for best week in a month
* U.S. November jobs data disappoints
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Recasts, adds new comment, U.S. data, FX table, updates
prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 4 (Reuters) - The dollar fell to a fresh
2-1/2-year low on Friday, on track for its worst week in a
month, as investors shrugged off a U.S. non-farm payrolls report
that badly missed expectations in November and focused on a
flurry of positive vaccine news.
Upbeat announcements on vaccinations have helped drive a
rally in riskier currencies, while actions taken by the Federal
Reserve have weakened the greenback.
The euro and Swiss franc, in contrast, were headed for their
best week against the dollar in a month.
The single currency touched a new 2-1/2-year high, while the
Swiss franc rose to its highest in nearly six years.
Data showed that U.S. non-farm payrolls increased by 245,000
jobs last month after rising by 610,000 in October. That was the
smallest gain since the jobs recovery started in May.
But "the vaccines, the restart of talks about stimulus and
the new administration, and a less confrontational international
background, are still going to be the themes that drive the
market," said Marvin Loh, senior global macro strategist, at
State Street Global Markets in Boston.
In mid-morning trading, the dollar index fell 0.2% to 90.513
=USD , after earlier falling to 90.471, the lowest in more than
2-1/2 years. On the week, the index was down 1.4%, its largest
week loss since early November.
"It has been another bad week for the US dollar," analysts
at MUFG said in a note. "It will encourage speculators to
rebuild short U.S. dollar positions which have been pared in
recent months."
The euro has been one of the biggest winners from recent
dollar weakness, breaking decisively above $1.20 this week
The single currency hit a two-and-a-half-year high of $1.2177,
just above the previous day's benchmark and was last up 0.1% at
$1.2161 EUR=EBS .
Against the Swiss franc, the dollar continued its descent,
dropping to a nearly six-year low of 0.8886 franc CHF=EBS . The
greenback was last down 0.2% at 0.8897.
The dollar though gained 0.2% against the yen JPY= at
104.02 yen JPY=EBS .
Ulas Akincilar, head of trading at the online trading
platform, INFINOX, said that despite the weaker-than-expected
U.S. employment data, it was a "finely balanced jobs report."
"The calculation is that the slowing jobs market will spur
U.S. lawmakers into agreeing a fiscal stimulus to match the
Fed's monetary support. And yet the slowdown is not so bad as to
send investors running for the hills," he added.
Sterling, meanwhile, rose 0.5% against the dollar to $1.3514
GBP=D3 , helped by the greenback's broad weakness. It hit a
2-1/2-year peak versus the greenback on expectations that
Britain will be able to clinch a post-Brexit trade deal with the
European Union. GBP/

========================================================
Currency bid prices at 10:20AM (1520 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.6180 90.6930 -0.07% +0.00% +90.7670 +90.4710
Euro/Dollar EUR=EBS $1.2149 $1.2145 +0.03% +8.37% +1.2177 +1.2132
Dollar/Yen JPY=D3 104.1450 103.9000 +0.25% -4.11% +104.1500 +103.7800
Euro/Yen EURJPY= 126.51 126.11 +0.32% +3.74% +126.6700 +126.0500
Dollar/Swiss CHF=EBS 0.8900 0.8910 -0.10% -8.02% +0.8917 +0.8886
Sterling/Dollar GBP=D3 1.3505 1.3448 +0.43% +1.83% +1.3538 +1.3409
Dollar/Canadian CAD=D3 1.2809 1.2864 -0.43% -1.40% +1.2873 +1.2805
Aussie/Dollar AUD=D3 0.7431 0.7442 -0.13% +5.91% +0.7443 +0.7410
Euro/Swiss EURCHF= 1.0811 1.0818 -0.06% -0.38% +1.0848 +1.0811
Euro/Sterling EURGBP= 0.8994 0.9026 -0.35% +6.39% +0.9067 +0.8984
NZ NZD=D3 0.7046 0.7078 -0.44% +4.73% +0.7079 +0.7028
Dollar/Dollar
Dollar/Norway NOK=D3 8.7770 8.7370 +0.31% -0.09% +8.7975 +8.7480
Euro/Norway EURNOK= 10.6638 10.6288 +0.33% +8.40% +10.6826 +10.6182
Dollar/Sweden SEK= 8.4487 8.4256 +0.10% -9.61% +8.4578 +8.4190
Euro/Sweden EURSEK= 10.2642 10.2539 +0.10% -1.96% +10.2820 +10.2440

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