Home Finance Dollar shakes off jobs, big week for Central Bank

Dollar shakes off jobs, big week for Central Bank

The U.S. dollar had clawed back some of the losses sustained after last week’s poor U.S. jobs report. This is due to the help by firmer U.S. Treasury yields in a big week for major central banks. The dollar index edged 0.1% higher to 92.23. The weak jobs report did not spark a new wave of dollar selling. The dollar got boosted also because of the benchmark 10-year U.S. Treasury yields firming to more than one-week highs. Latest data shows that they have increased bets on the greenback. On the other hand, the euro for a second consecutive week, boosting net bets to their highest.

National Australia Bank predicts that the central bank will reduce asset purchases. NAB analyst Tapas Strickland wrote a report that although the optics of tapering amid protracted lockdowns means it is likely to be a close decision. The euro also failed to extend its gains. This is after rising above the $1.19 levels for the first time since July end. It was trading at $1.1873 before a European Central Bank policy decision. Economists says that it is still too early for the ECB to call time on emergency stimulus. After euro area inflation surged to a 10-year high at 3% last week, it could agree to slow the pace of its bond. In cryptocurrencies, bitcoin was about flat at $51,785.60. Smaller rival ether traded little changed at $3,942.77.

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