News Tech: US dollar rises Friday to try to make up for some losses after the steepest daily decline in more than two weeks as traders turn to US jobs data for further clues on economic strength. The U.S. Dollar Index, which measures the U.S. dollar against a basket of currencies, rose 0.21% to 105.92 on Thursday after falling 0.68%, its biggest drop since July 19. About 3% below its mid-July high. It’s still there. Investors are waiting for the main US non-farm payroll report due at 12:30 GMT, which will provide clues about how the US economy is faring. Economists expect 250,000 jobs to rise in July after 372,000 were added in June.
The euro fell 0.17% against the dollar at $1.02285, within the relatively narrow $1.01 to $1.03 range it has been trading since July 19, as fears of a European energy crisis lifted fears of a slowing US economy canceled out by A standoff over the return of turbines that Russia claims is blocking gas supplies to Europe showed no signs of resolution on Thursday. Meanwhile, the pound was little changed at $1.2156 after the Bank of England (BoE) hiked its highest rate in 27 years to combat rising inflation, but could start in the fourth quarter of this year. warned of a long recession.
But Thursday’s data showed signs of a slowdown in the job market may already have begun, as the number of new Americans filing for unemployment benefits rose last week. “The combination of much better than expected employment data, especially in the average hourly earnings data, which is expected to be significantly higher, could push the U.S. dollar overall higher,” said John Hardy, head of FX strategy at Saxo Bank.
DailyFX Forex Strategist Justin McQueen said: “The Bank of England has said the economy will be in recession for the next five quarters, underscoring the bleak outlook for the UK economy and the British pound,” he said. Elsewhere, the US dollar rose 0.24% against the Japanese yen to 133.27 per dollar after falling 0.69% on Thursday. The risk-sensitive Aussie and Kiwi remained little changed at $0.69605 and him at $0.6299 respectively. Among cryptocurrencies, Bitcoin rose 2.9% to $23,272.80.