FOREX-Dollar drifts lower with focus turning to US jobs report


08/02/2014 11:25 AST

The dollar drifted slightly lower in early Asian trading on Friday, as investors cautiously awaited the latest non-farm payrolls report for clues on the health of the U.S. labour market and the broader economy.

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.

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.

"The non-farm payrolls report is always an important release for the U.S. dollar but this month in particular, it could make or break the greenback," Kathy Lien, managing director at BK Asset Management, said in a note to clients.

"In January, the U.S. dollar collapsed and officially peaked after the worst NFP report in nearly 3 years. This month investors are hoping for a strong rebound that will restore demand for U.S. assets," she said.

But 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.

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 dollar drifted down about 0.2 percent against a basket of currencies to 80.886, and shed about 0.1 percent against its Japanese counterpart to 102.03 yen.

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.

Reuters
Forex News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 127 470,450
ETISALAT 17.2 1,101,899
GFH 0.59 99,270
EMIRATESNBD 7.96 235,332
DAMAC 3.06 2,229,322
MASQ 69
SABIC 102.33 6,566,984
Recent News

Maaden announces new Vice Chairman
The Saudi Arabian Mining Company (Maaden) announces the Board of Directors decision on June 21, 2017 of appointing H.E. Sulaiman Bin Abdulrahman Al-Gwaiz (non-executive member) as the Vice Chairman f

QNB sees minimal impact from standoff
Qatar National Bank said it expects to meet its earnings targets as the ongoing Saudi-led campaign to ‘isolate’ the country has minimal impact on its operations.

The Middle East’s largest le

Egypt seeks FDI boost as its economy struggles
Egypt’s investment ministry has finalised a much-anticipated set of regulations outlining incentives that it hopes will lure back badly needed foreign investors, Investment Minister Sahar Nasr told R

Qatar bourse says Gulf institutions dumped Qatari shares
The Qatar Stock Exchange on Wednesday said it believed some institutional investors from Saudi Arabia, the UAE and Bahrain dumped shares to drive down the Qatari stock market in the wake of the diplo

UAE banks clear $175bn cheques in 5 months
A total of 12.922 million cheques worth Dh643.7 billion ($175 billion) were handled by the UAE Clearing Cheque System during the first five months of 2017, according to the UAE Central Bank data.

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?