Dollar Edges Forward Ahead of Jobs Report

Dollar Edges Forward Ahead of Jobs Report
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(November 03, 2017) The dollar inched forward slightly on Friday as investors wait for U.S. jobs data to lift the currency out of its rut.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.07% to 94.69 as of 5:53 AM ET (9:53 AM GMT).

The U.S. Department of Labor reported Thursday that initial jobless claims fell 5,000 to a seasonally adjusted 229,000 for the week ended October 28, less than economist had expected. An upbeat nonfarm payrolls is expected at 8:30 AM ET (12:30 PM GMT) on Friday.

The dollar was weighed down by news that President Donald Trump had nominated Federal Reserve Governor Jerome Powell to head the central bank. Powell is likely to follow a similar dovish monetary policy stance as Fed chair Janet Yellen.

The dollar neared a four-month high against the yen, with USD/JPY rising 0.04% to 114.12.

GBP/USD meanwhile edged up 0.05% to 1.3064 after falling the most in one day after the Bank of England raised interest rates for the first time in ten years. Data on Friday morning showed the economy is picking up slightly, with UK Services PMI rising to 55.6 in October, beating expectations of 53.3.

The euro was down, with EUR/USD slipping 0.09% to 1.1647 and EUR/GBP decreasing 0.13% to 0.8914

The Australian dollar was the hardest hit, with AUD/USD slumping 0.54% to 0.7671 after data showed that retail sales were flat in September.

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