FOREX-Dollar drifts lower in eerie calm ahead of US jobs report


08/02/2014 11:26 AST

The dollar edged lower in a quiet Asian session on Friday, as most investors looked ahead to the latest non-farm payrolls report for clues on the health of the U.S. labour market and the broader economy.

After the recent rout in emerging markets sparked large moves, a semblance of calm characterized Friday's trading before the next big test.

The payrolls data, which is due later Friday, is expected to show that employers added 185,000 jobs in January, according to the median estimate of 101 economists polled by Reuters.

"I think it's a big number. This will be large in confirming the weaker number trend, or the turn of the tide," said Bart Wakabayashi, head of forex at State Street Global Markets in Tokyo.

On the other hand, he said, the big picture is intact, in that no matter what the jobs reports shows, markets are pricing in the eventual end of the U.S. Federal Reserve's stimulus.

"I think in general, people are in agreement that it's not a tapering story as opposed to just a reevaluation of their positions," Wakabayashi said.

Concerns about the Fed's tapering and slowing growth in China were big drivers of the recent selloff in emerging markets.

The dollar inched down against a basket of currencies to 80.885, and shed about 0.1 percent against its Japanese counterpart to 102.03 yen.

Even if labour conditions improve, Boston Federal Reserve President Eric Rosengren said late Thursday that the central bank should be "quite patient" in removing stimulus because broader measures of the U.S. labour market remain weak.

Rosengren, considered a dovish Fed official, said the labour market conditions remain far from those which would warrant higher interest rates.

"Tapering is a foregone conclusion," Marvin Loh, a senior fixed-income market strategist at Bank of New York Mellon Global Markets, said at a seminar in Tokyo on Friday.

He expects the Fed will end its quantitative easing program by the third quarter of 2014. By then, he said, the yield on the benchmark 10-year Treasury will rise to around 3.25 percent, and could rose to 4 percent by the middle of 2015.

The number of Americans filing new claims for unemployment benefits fell more than expected last week, data showed on Thursday, dropping by 20,000 new claims.

Other data released on Thursday showed U.S. exports weakening in December, which could drag on growth if that trend were sustained into the first quarter.

The euro was steady against the greenback after rallying to a one-week high of $1.3619 on Thursday, following European Central Bank President Mario Draghi's comment that the euro zone is not plagued by deflation.

The ECB left interest rates unchanged at its policy meeting on Thursday, opting to wait for more data before taking action.

Euro zone inflation eased to 0.7 percent last month and retail sales on Wednesday fell short of expectations, while recent upbeat business sentiment surveys add up to a mixed picture of economic conditions in the euro zone.

The euro was steady on the day at $1.3588, well off a more than two-month low of $1.3475 plumbed on Monday. It gave up about 0.1 percent against the yen to 138.64 yen, though it remained above a more than two-month low of 136.20 yen hit on Tuesday.

For more on this Click Here

Reuters
Forex News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 146 383,603
WAHA 1.72 489,438
DAMAC 2.88 5,023,218
BATELCO 0.26 25,000
BKIZ 0.08 62,350
SABIC 98.2 2,769,289
BKDB 0.23
Recent News

OPEC says it will extend production cuts through March 2018
The Organization of the Petroleum Exporting Countries on Thursday renewed an agreement to withhold some crude-oil supplies into March 2018, people familiar with the matter said, doubling down on its

OPEC meets to extend oil cuts for up to one year
OPEC and non-member oil producers are gearing up to extend output cuts on Thursday, possibly by as long as 12 months, to help clear a global stocks overhang and prop up crude prices.

The O

U.K. Economy Weakens More Than Estimated, Growth Drops to 0.2%
The U.K. economy slowed more sharply than initially estimated in the first quarter as shoppers flagged and trade dragged on growth.

Gross domestic product rose 0.2 percent, less than the 0

OPEC Set to Prolong Cuts as Effort to Clear Oil Glut Goes Slow
OPEC and its allies were poised to extend their production cuts for another nine months after last year’s agreement failed to clear a global supply glut or deliver a sustainable price recovery.

Oman share index falls on regional cues
Oman’s benchmark, MSM30 Index, followed regional cues and ended on a weaker note at 5,392.31 points, down 0.17 per cent. The MSM Sharia Index closed at 789.80 points, up 0.06 per cent. Al Madina Inve

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?