Today:

25/09/2021

The Dollar Is Falling Against Everything Ahead of Key Jobs Data

Share this article

The US dollar fell against nearly every major currency on Tuesday, as traders await US job data this week for the next cue on market direction. 

Commodity producers jobs were among the biggest gainers, with the New Zealand dollar and the South African rand both gaining close to 1%. The euro gained ground due to comments on stimulus withdrawal made by European Central Bank official Robert Holzmann. 

The Bloomberg dollar index has fallen nearly 1.5 percent since its recent peak, with further pressure coming from last week’s appearance by Federal Reserve Chair Jerome Powell, who sounded a cautious note on employment while hinting that the central bank may begin scaling back asset purchases this year. 

Markets continue to liquidate long-dollar positions following Powell’s Jackson Hole speech last week,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “Friday’s nonfarm payrolls will be a key data print for markets,” and a much better-than-expected number could halt the dollar’s decline, he said. 

According to NatWest Markets Plc, a strong US employment report could increase the likelihood that the Fed will begin tapering as soon as next month. This is bad news for higher-yielding emerging-market assets. According to the median estimate in a Bloomberg survey of economists, growth in US payrolls Jobs likely slowed in August after increasing by the most in nearly a year the previous month. 

The Bloomberg Euro Index is on track to post its eighth consecutive day of gains, the longest such streak since March 2020, when the coronavirus crisis spread globally. South Africa’s rand has led emerging-market currency gains in the last week, reversing a month that was among the worst in the group. 

A technical chart suggests that the US dollar will continue to fall. The Bloomberg Dollar Spot Index has fallen below upward trend-line support that connects June and August lows, as indicated by technical indicators like the MACD and stochastics oscillator. “Markets are no longer worried about Fed taper and rate hikes,” said Qi Gao, a currency strategist at Scotiabank in Singapore. 

Source: Bloomberg 

Similar Articles

Don't Miss

Navy Will Cut 500 Civilian East Coast Jobs

To fulfil Navy Region Mid-Fiscal Atlantic's Year 2022 budget objective, 500 Navy civilian employees on the East Coast will be laid off, and port activities would be limited to daylight Monday through Friday.

Fed signals bond-buying taper may start soon

As the US central bank's shift away from economic crisis measures gets traction, the Federal Reserve indicated on Wednesday that it will likely begin cutting its monthly bond purchases as soon as November, and that interest rate hikes may come sooner than planned.

Should staff return to the office?

For example, it may persist with current Covid-19 precautions in the workplace, requiring employers to plan for social distancing and to provide extra hygiene facilities. There may also be special arrangements in place for Vulnerable workers, such as pregnant women and those who have been shielding during the crisis