Dollar Holds Near Three-Month High, Euro Sentiment Grows Bearish
The US dollar held near a three-month high on Wednesday (March 4), while sentiment toward the euro worsened as conflict in the Middle East fueled concerns about a more persistent spike in energy prices and weighed on stock markets. The dollar index edged down 0.2% to 98.86 after briefly touching its strongest level since November 28.
The euro rose a limited 0.2% to US$1.16135, having earlier touched its weakest level since late November. The euro's movement also came after Tuesday's data showed eurozone inflation rose faster than expected in February, before the escalation of the Iran conflict.
The dollar's direction briefly held after a report by The New York Times that the Iranian Intelligence Ministry had signaled openness to talks with the CIA through indirect channels. However, the options market showed the most bearish position against the euro in at least a year, with the cost of a three-month euro downside hedge at its largest premium since March of last year (LSEG data).
On the US data front, the ADP report showed private sector jobs added 63,000 in February (above the 50,000 forecast), while January's figure was revised down to 11,000. This data serves as a prelude to the government's nonfarm payrolls (NFP) release, with economists' consensus forecasting February's NFP to be around 59,000–60,000 and the unemployment rate remaining at 4.3%.
In other currencies, the pound rose 0.1% to US$1.337, while the dollar fell 0.37% against the yen to 157.2. The dollar also weakened 0.3% against the offshore yuan to 6.899 after China's PMI data showed mixed signals between official indicators and private-sector readings.
Source: Newsmaker.id
