Dollar Consolidates Before US Payrolls Data
A gauge of the dollar held largely steady as traders stayed on the sidelines ahead of US payrolls data later on Friday and elections next week.
The Bloomberg Dollar Spot Index was little changed after posting its biggest monthly gain in more than two years. One-week implied volatility for the gauge rose to the highest since April 2020 as investors saw the US election as a bigger risk event than the payrolls data.
“It feels reasonable to go into the US election long of US dollar, but in the art of risk management that length is being dialed down,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a research note. “While today’s US non-farm payrolls report offers two-way risk for US dollar positioning, the adjustment into the election may have further to go”.
AUD/USD down 0.1% to 0.6574 as the nation’s household spending edged down in September.
US Treasury yields eased. The 10-year yield slipped one basis point to 4.27%.
US is expected to report steady unemployment rate even as storms and strikes put a temporary dent in hiring. Payrolls probably rose by 105,000 in October following September’s 254,000 increase. The range of expectations is wide — from a 10,000 decline to a 180,000 increase.
Source : Bloomberg
