Fed’s Powell opens door to potential rate cuts at Jackson Hole
* Dollar steadies after Friday payrolls fall
* Jobs data takes shine off dollar rebound
* Ethereum gains on futures debut
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Ritvik Carvalho
LONDON, Feb 8(Reuters) - The dollar steadied against major
currencies on Monday as traders waited for more data on the U.S.
economy, after a disappointing jobs report last week ended a
rally in the greenback.
The euro was little changed against the dollar, after data
showed German industry avoided a contraction in December.
Despite coronavirus lockdowns at home and abroad, demand from
China helped export-oriented manufacturers in Europe's largest
economy weather the COVID-19 pandemic. Speculators have been reducing short positions in the
dollar, but some analysts say better U.S. economic data and
continued progress in fighting the COVID-19 pandemic will be
needed for further dollar gains.
"Although much of the optimism towards U.S. macro is
probably well founded, it is less apparent this will come to the
data ...," said Kristoffer Kjær Lomholt, chief analyst, FX and
rates strategy at Danske Bank.
"Indeed, the U.S. jobs recovery has more or less stalled,
and that did leave some space to take EUR/USD higher. The next
big theme that may be priced further in to spot is moving ahead
with U.S. fiscal talks."
Against the euro EUR=EBS , the dollar traded 0.1% higher at
$1.2032 after a 0.7% slump on Friday. Due today is Sentix's euro
zone investor sentiment index EUSTCS=ECI for February due at
0930 GMT.
In a note to clients, J.P. Morgan strategists said they
"have growing confidence of underperformance of EUR vs USD."
"That warrants two changes to the portfolio: 1) rotating
away from USD to fund trades primarily out of EUR, and 2)
selling EUR/USD outright in spot."
The British pound GBP=D3 bought $1.3715, 0.15% lower to
the dollar.
The dollar was quoted at 105.57 yen JPY=EBS , having pulled
back from a three-month high reached on Friday.
The U.S. economy created fewer jobs than expected in January
and job losses the previous month were greater than initially
reported, data at the end of last week showed. U.S. consumer prices and consumer sentiment reports 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 said. Investors are also closely
monitoring a U.S. debate on additional fiscal stimulus.
President Joe Biden and his Democrats are pushing ahead with
$1.9 trillion COVID-19 relief package. House of Representatives
Speaker Nancy Pelosi has predicted the final relief legislation
could pass Congress before March 15. The dollar index =USD against a basket of six major
currencies stood at 91.130, after falling 0.6% on 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 spot prices
ETH=BTSP rose 1.6% to $1,642 after the listing of ethereum
futures on the Chicago Mercantile Exchange on Sunday.
Bitcoin BTC=BTSP , the world's biggest cryptocurrency by
market capitalisation, rose 1% to $39,244.
The onshore yuan CNY=CFXS edged up to 6.4569 per dollar,
but trade is likely to be subdued before the week-long Chinese
New Year holidays beginning Thursday.
Elsewhere, the Australian dollar AUD=D3 was off 0.15% at
$0.7665. Across the Tasman Sea, the New Zealand dollar NZD=D3
traded flat at $0.7192.
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World FX rates https://tmsnrt.rs/2RBWI5E
Euro zone investor sentiment on the uptick https://tmsnrt.rs/3jtLbE7
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