Forex Trends Monday: Strong jobs data fails to boost US dollar

U.S. one-dollar and five-dollar currency notes; taken September 2018.

Strong U.S. jobs data on Friday failed to boost the U.S. dollar after somewhat more dovish comments from U.S. Federal Reserve chief Jerome Powell.

Powell said on Friday that the central bank would be patient as it evaluated potential risks of an economic slowdown, a message that drove Wall Street optimism.  The U.S. nonfarm payrolls report for December showed a 312,000 rise.

“Although the December jobs report was exceptionally strong with the U.S. economy adding the most jobs since February, the acceleration in average hourly earnings and 312,000 increase won’t be enough to draw investors back into the dollar,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note on Friday.

Currencies

The U.S. dollar index was at 96.13 at 8:37 A.M. SGT after spiking as high as 96.61 on Friday, before retreating, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 2.679 percent at 8:48 A.M. SGT after rising from as low as 2.575 percent on Friday, according to Tullett Prebon data.

The euro/dollar was at 1.1412 at 8:50 A.M. SGT after trading in a 1.1344 to 1.1419 range on Friday, according to DZHI data.

The British pound/dollar was at 1.2735 at 8:50 A.M. SGT after trading in a 1.2615 to 1.2745 range on Friday, according to DZHI data.

The dollar/yen was at 108.522 at 8:51 A.M. SGT after trading in a 107.48 to 108.589 range on Friday, according to DZHI data.

The dollar/yuan ended Friday at 6.8667 after trading in a 6.8609 to 6.8708 range during the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3586 at 8:51 A.M. SGT after trading in a 1.3580 to 1.3647 range on Friday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1200 at 8:46 A.M. SGT after trading in a 4.1310 to 4.1410 range on Friday, according to DZHI data.

The dollar/Indonesian rupiah ended Friday at 14,265 after trading in a 14,250 to 14,470 range during the session, according to DZHI data.

 

 

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