The better-than-expected September nonfarm payrolls report showed a solid U.S. labor market and firmed investors’ expectations for a continued tightening pace from the Federal Reserve.US dollar indexOn Friday (7th), it continued to attack and closed in the red for the week.
ICE, which tracks the dollar against six major currencies, is late in New York US dollar index (DXY) rose 0.46% to 112.78. The U.S. dollar had a poor start to the week, closing in the black for two consecutive days with a cumulative decline of nearly 2%. Afterwards, it got rid of the decline and strengthened for three consecutive trading days, rising about 0.6% this week.
Data from the Labor Department showed that the US added 263,000 non-agricultural jobs in September. Although the growth rate cooled slightly from the previous month, it was still higher than market expectations. The unemployment rate fell to 3.5%, highlighting that the labor market is still strong.
In an effort to tame inflation, the Fed has raised its policy rate to its current range of 3-3.25% from near zero at the start of the year, signaling it will continue to raise rates sharply before the end of the year. In addition, a number of Fed officials have recently issued a hawkish tone, emphasizing the importance of fighting inflation, and expecting interest rates to rise further.
Adam Button, chief foreign exchange analyst at ForexLive, said: “The U.S. dollar is a crowded position. Any signs of weakness in the U.S. economy will weigh heavily on the dollar, but this problem will never happen to non-farm payrolls. The non-agricultural data makes the dollar position even more. crowded.”
Market strategists believe next week’s inflation data will also be closely watched and could have an impact on investors’ expectations for a rate hike by the Fed.
GBPIt fell for three straight sessions, down 0.7% to $1.1109, a one-week low, and down about 0.7% for the week.
Socgen total economic strategist Kit Juckes believes that as the dollar regains buying,GBPStill the most easily sold European currency for investors, there are still concerns over the UK government’s credibility and fiscal policy.
Mitsubishi UFJ also maintainsGBPbearish stance thatGBPThe recent rally has been built on shaky foundations, with downside risks remaining until the end of the year.
JPYReversing earlier gains, it edged down 0.2% against the dollar to 145.38 JPYjust one step away from a 24-year low set on the 22nd of last month.
While the Bank of Japan continues to stick to its easing policy stance, major global central banks including the Fed are still raising interest rates and frequently releasing hawkish remarks. The effect of intervening in the foreign exchange market has almost disappeared.JPYsparking speculation about the authorities’ re-entry into the market to intervene.
Adam Cole, chief foreign exchange strategist at RBC Europe, said: “While Japan’s finance ministry appears to want to preventJPYContinue to depreciate below 145, but the importance of this level will soon diminish as the model shows that the Japanese authorities are more sensitive to changes in interest rates than the level of the exchange rate. “
After the US non-farm payrolls report was released,EURContinuing the decline, it fell 0.52% to US$0.9739, which was also a new weekly low, and fell about 0.6% for the week.
As of Saturday (8th) Taiwan time about 6:00 Price:
- US dollar indexReported 112.7754. +0.4830%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $0.9741. -0.5208%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.1091. -0.6628%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst 0.6368 yuan. -0.6707%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.3737 per US dollar Canadian Dollars。-0.0437%
- dollar againstJPY (USD/JPY) exchange rate at 145.33 USD JPY。+0.1654%