Written by Uncle Banerjee and Alan John
Singapore/London, November 3 (Reuters) – The euro and pound rose on Friday, their fourth week in a row, as a U.S.-led global bond rally pushed yields lower, pushing the dollar lower and providing relief to the beleaguered Japanese yen. The yellowtail was heading for its biggest rise.
But the all-important US non-farm jobs report, scheduled to be released at 12:30 GMT, the most important data point of the week, could change that perspective forever. .
EUR Euro=EBS The stock was last up 0.27% at $1.06515, and the gains at the start of the week mean a weekly gain of 0.8%, its highest level since July.
sterling GBP=D3 The stock also rose 0.2% on the day to $1.2228, marking a weekly gain of 0.86%, also its highest since July.
The dollar’s decline after a very strong recent rally, with the dollar index on track for a weekly decline of 0.6%, its third week of decline in the past 16 years, reflects lower U.S. yields. The benchmark 10-year Treasury yield is on track to drop nearly 20 basis points in a week, the most in a week since July. US10YT=RR
This week’s decline comes as the U.S. Treasury announced a smaller-than-expected increase in the supply of long-term Treasuries and that Federal Reserve Chairman Jerome Powell announced in his post-policy press conference that the Fed had completed its interest rate hike. This was caused by a combination of suggesting and appearing more confident. Wednesday meeting. we/
According to the CME FedWatch tool, the market is pricing in a probability of a December interest rate hike compared to 39% at the beginning of the week, even though the Fed officially left open the possibility of further borrowing cost increases amid the financial crisis. It was shown that it was less than 20%. A nod to economic resilience.
But this week’s main event is, US payroll calculation, It’s still to come.
Yusuke Miyairi, FX strategist at Nomura, said, “There were a lot of events this week, including the Bank of Japan, the Federal Reserve, Treasury repayments, and the BOE, but the most important thing is salaries.”
“If there’s a big outlier, like $100,000 compared to consensus, I think that’s when people start selling the dollar in earnest. I don’t think we’ve reached that tipping point yet, but people’s sentiment is starting to head in that direction,” he said.
On the other hand, if the economy is strong, people will return to buying dollars, he said.
Analyst’s thoughts US non-farm payrolls Employment rose by 180,000 in October, likely slowing from September’s 336,000. This is partly due to a strike by the United Auto Workers (UAW) against Detroit’s Big Three automakers, which reduced manufacturing labor costs.
The Bank of England joined other major central banks on Thursday in keeping interest rates on hold and emphasizing that it had no plans to start cutting rates anytime soon, adding to the rally in bond prices.
circle JPY=EBS The dollar fell 0.2% to 150.19 on Friday after a whirlwind week that saw the Japanese currency hit a one-year low against the dollar and a 15-year low against the euro after the Bank of Japan adjusted yield curve control. It rose to the yen. It announced policy on Tuesday, but it wasn’t as big as the market had expected.
Kazuo UedaThe central bank’s governor will continue dismantling ultra-easy monetary policy, aiming to end a decade of easy monetary policy next year, Reuters reported on Thursday, according to six sources familiar with the central bank’s thinking.
australian dollar Australian dollar=D3 It rose slightly to US$0.6444, just shy of Thursday’s over-one-month high of US$0.6456.
Both Australian and New Zealand dollars NZD=D3 It rose 1.7% for the week, again its best weekly performance since mid-July.
However, the Swiss franc, which benefited from October’s safe delivery auction, fell this week. The dollar is up 0.25% on the week against the franc, and was last at 0.9041 francs. CHF=EBS
world exchange rates https://tmsnrt.rs/2RBWI5E
(Reporting by Ankur Banerjee and Rae Wee in Singapore; Editing by Gerry Doyle, Kim Coghill and David Evans)
((ankur.banerjee@thomsonreuters.com;; Mobile – +65 8121 3925; Follow on X (formerly Twitter): @AnkurBanerjee17;))
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