Dollar Falls Ahead Of US Jobs Data
London (Jan 9) The US dollar declined against its major counterparts in European deals on Friday, as traders await US jobs data for December, due today.
The economy is expected to have added 240,000 jobs in December, following an increase of 321,000 jobs a month earlier.
The jobless rate is seen at 5.7% for the month, compared to 5.8% in November.
Remarks by Minneapolis Fed President Narayana Kocherlakota on Thursday also weighed on the dollar.
Speaking at a gathering held at his bank, Kocherlakota told that raising rates this year could retard growth, as inflation has been running below the Fed's target and unemployment still remains high.
"Given my current outlook for inflation, the FOMC can best achieve its macroeconomic objectives by not raising the fed funds rate target this year," he noted.
Minutes from the Federal Reserve's December 16-17 meeting showed on Wednesday that the bank "is unlikely to begin the normalization process" until at least before April.
Fed officials expressed concerns about faltering global economy, which may pose downside risks to domestic real activity and employment, although those risks were "nearly balanced" by positive developments.
The greenback declined to 1.0160 against the Swiss franc, compared to 1.0182 hit at yesterday's close. The next possible downside target for the greenback-franc pair is seen around the 1.00 zone.
Switzerland consumer prices declined most since October 2013 largely due to lower oil prices, data from the Federal Statistical Office showed.
Consumer prices were down 0.3% year-on-year in December, following a 0.1% drop in November.
The greenback eased to 1.1819 against the euro, after having advanced to a multi-year high of 1.1753 on Thursday. Further weakness may take the greenback to a support around the 1.20 zone.
The greenback hit a 2-day low of 1.5154 against the pound, down from Thursday's closing value of 1.5083. If the greenback slides further, 1.52 is seen as its next support level.
The UK visible trade deficit narrowed more than expected in November, mainly due to a fall in fuel imports, data from the Office for National Statistics showed.
The visible trade gap fell to GBP 8.8 billion in November from GBP 9.8 billion in October. It was expected to decrease to GBP 9.5 billion .
The greenback remained weaker against the Japanese yen, trading at 119.22. This may be compared to Thursday's closing value of 119.60. On the downside, 118.00 is seen as the greenback's support level.
The greenback eased to 0.8138 against the Australian dollar, heading to breach early 3-day low of 0.8146. Continuation of downtrend may lead the greenback to a support around the 0.82 level.
Besides jobs data, U.S wholesale inventories and Canada building permits for November and jobs data and housing starts for December are due in the New York session.
Source: AllianceNews
