Dollar Hits One-Week Low Ahead of NFP, Fed's Waller
The dollar headed for a third daily drop and the yen rose to its highest in a month ahead of the US August payrolls report.
Jobs data and a speech later Friday by Governor Christopher Waller on the economic outlook could help determine the magnitude of the Federal Reserve's anticipated interest-rate cut later this month; money markets price in a one-in-three chance that the central bank eases by half a percentage point.
The Bloomberg Dollar Spot Index falls as much as 0.3% before paring losses; US two-year yield down three basis points to 3.71%, fresh one-month low.
Economists expect nonfarm payrolls to rise by 165k jobs in August and the unemployment rate to edge lower to 4.2%, according to a Bloomberg survey. Whisper numbers among Bloomberg terminal users suggest an addition of 152k jobs.
USD/JPY drops 1% to 142.06 before halving losses; yen rallied earlier as losses in the Nikkei spurred funds to top up yen long positions, particularly against the dollar and Aussie, according to Asia-based FX traders.
JPMorgan is adding positions to its existing yen longs on the view that Friday's US jobs data will disappoint, paving the way for the Fed to cut the policy interest rate by 50 basis points this month.
EUR/USD up a third day, rises 0.1% to 1.1121 day high; one-week risk reversals briefly rose above 50 basis points.
Source : Bloomberg
Sumber : Bloomberg
