NEW YORK The U.S. dollar rose on Thursday, regaining its safe-haven appeal, as investors worried that the resurgence of U.S. coronavirus cases could erase the summer's employment gains.
NEW YORK The eurodollar futures market, which tracks short-term funding rate expectations over several years, is signaling funding stress by year-end for banks and corporations that could trigger abnormally high demand for U.S. dollars.
* U.S. economy creates 4.8 mln jobs * Safe-haven dollar also hurt by vaccine news * Dollar on pace to post losses for 2nd straight week * Florida virus cases surge * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Recasts with change in dollar direction, adds new comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, July 2 The U.S. dollar rose on Thursday, regaining its safe-haven appeal, as investors focused on the resurgence of U.S. coronavirus cases and raised concerns the economy would give back the summer's employment gains. Earlier in the session, the dollar fell as risk appetite increased after data showing the world's largest economy defied expectations for a second month in a row, creating jobs in June at a far faster pace than market forecasts. But that optimism waned as reports of more U.S. cases of COVID-19 emerged. Florida reported more than 10,000 new coronavirus cases on Thursday, the biggest one-day increase in the state since the pandemic started, according to a Reuters tally. The number of cases nationwide shot up by nearly 50,000 the day before, the fourth record rise in infections in the last seven days, following moves in many states to allow businesses to reopen from strict shutdowns aimed at containing the pandemic. "Dollar performance will hinge on the U.S. response to COVID," said Juan Perez, senior currency trader at Tempus Inc. in Washington. "On that end, the U.S. is losing because the situation is far more difficult than in other parts of the world." Despite Thursday's rise, the greenback was on track to post losses for a second straight week against a basket of major currencies. The dollar hit session lows against the euro and held onto losses against a major currency basket after data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the most since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June. The unemployment rate, meanwhile, fell to 11.1% last month from 13.3% in May. The report had diminished the dollar's appeal as a safe haven. "Everything still seems to be heading in the right direction. Right now, expectations are pretty high that the economy is rebounding back," said Edward Moya, senior market strategist at OANDA in New York. In midday trading, the dollar index rose 0.2% to 97.31, as the euro fell 0.2% versus the greenback to $1.1226. Despite the dollar's recent spell of weakness, the greenback was still about 2.5% from the 2020 low of 94.6 in the dollar index hit in early March. A Reuters poll predicts more weakness for the greenback over the next 12 months due to weak global demand. The dollar gained 0.1% against the yen to 107.58 yen. The U.S. currency had also been buffeted earlier in the global session by news a COVID-19 vaccine developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer had shown potential in early-stage human trials. ======================================================== Currency bid prices at 12:55PM (1655 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1224 $1.1250 -0.23% +0.13% +1.1302 +1.1224 Dollar/Yen JPY= 107.5800 107.4600 +0.11% -1.18% +107.7200 +107.3400 Euro/Yen EURJPY= 120.77 120.90 -0.11% -0.97% +121.4300 +120.7700 Dollar/Swiss CHF= 0.9460 0.9457 +0.03% -2.25% +0.9464 +0.9427 Sterling/Dollar GBP= 1.2463 1.2470 -0.06% -6.01% +1.2529 +1.2457 Dollar/Canadian CAD= 1.3585 1.3585 +0.00% +4.61% +1.3623 +1.3560 Australian/Doll AUD= 0.6919 0.6914 +0.07% -1.45% +0.6952 +0.6902 ar Euro/Swiss EURCHF= 1.0620 1.0640 -0.19% -2.12% +1.0661 +1.0618 Euro/Sterling EURGBP= 0.9005 0.9018 -0.14% +6.52% +0.9032 +0.9003 NZ NZD= 0.6508 0.6475 +0.51% -3.38% +0.6536 +0.6475 Dollar/Dollar Dollar/Norway NOK= 9.5419 9.5133 +0.30% +8.70% +9.5684 +9.4396 Euro/Norway EURNOK= 10.7115 10.7025 +0.08% +8.88% +10.7495 +10.6480 Dollar/Sweden SEK= 9.3294 9.3064 +0.04% -0.19% +9.3394 +9.2378 Euro/Sweden EURSEK= 10.4761 10.4716 +0.04% +0.07% +10.4915 +10.4313 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Jonathan Oatis and Andrea Ricci)
* U.S. economy creates 4.8 mln jobs * Safe-haven dollar also hurt by vaccine news * Dollar on pace to post losses for 2nd straight week * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Adds analyst comment, more details on jobs report, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, July 2 The U.S. dollar fell on Thursday after data showing the world's largest economy defying expectations for a second month in a row, creating jobs in June at a far faster pace than market forecasts. The greenback was on track to post losses for a second straight week against a basket of major currencies. Data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the most since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June. The unemployment rate, meanwhile, fell to 11.1% last month from 13.3% in May. The report further diminished the dollar's appeal as a safe haven. "Everything still seems to be heading in the right direction. Right now, expectations are pretty high that the economy is rebounding back," said Edward Moya, senior market strategist at OANDA in New York. In midmorning trade, the dollar index slid 0.1% to 97.064, as the euro rose 0.1% versus the greenback to $1.1262. Traders are focused on whether the euro can close above $1.13 and OANDA's Moya said it could happen. "This is going to support the belief that a massive weakening in the U.S. dollar is upon us because there's still optimism that risky assets are going to shine because the Federal Reserve is going to remain very accommodative," Moya said. Despite the dollar's recent spell of weakness, the greenback is still up 2.5% from the 2020 low of 94.6 in the dollar index hit in early March. A Reuters poll predicts more weakness for the greenback over the next 12 months due to weak global demand. The dollar, however, gained 0.1% against the yen to 107.59 yen. The U.S. currency had been buffeted earlier in the session by news that a COVID-19 vaccine developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer had shown potential in early-stage human trials. ======================================================== Currency bid prices at 9:41AM (1341 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1263 $1.1250 +0.12% +0.47% +1.1302 +1.1248 Dollar/Yen JPY= 107.5800 107.4600 +0.11% -1.18% +107.7200 +107.3400 Euro/Yen EURJPY= 121.17 120.90 +0.22% -0.64% +121.4300 +120.7700 Dollar/Swiss CHF= 0.9446 0.9457 -0.12% -2.40% +0.9464 +0.9427 Sterling/Dollar GBP= 1.2491 1.2470 +0.17% -5.79% +1.2529 +1.2462 Dollar/Canadian CAD= 1.3578 1.3585 -0.05% +4.56% +1.3611 +1.3564 Australian/Doll AUD= 0.6932 0.6914 +0.26% -1.27% +0.6943 +0.6905 ar Euro/Swiss EURCHF= 1.0639 1.0640 -0.01% -1.96% +1.0661 +1.0639 Euro/Sterling EURGBP= 0.9015 0.9018 -0.03% +6.64% +0.9032 +0.9006 NZ NZD= 0.6521 0.6475 +0.71% -3.19% +0.6536 +0.6475 Dollar/Dollar Dollar/Norway NOK= 9.4753 9.5133 -0.40% +7.94% +9.5302 +9.4396 Euro/Norway EURNOK= 10.6716 10.7025 -0.29% +8.47% +10.7260 +10.6480 Dollar/Sweden SEK= 9.2943 9.3064 -0.03% -0.56% +9.3157 +9.2378 Euro/Sweden EURSEK= 10.4689 10.4716 -0.03% +0.00% +10.4811 +10.4313 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci and Jonathan Oatis)
* U.S. economy creates 4.8 mln jobs * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Recasts, adds U.S. jobs data, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, July 2 The U.S. dollar fell on Thursday after data showing the world's largest economy defying expectations for a second month in a row, creating jobs in June at a far faster pace than market forecasts. Data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the most since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June. The report further diminished the dollar's appeal as a safe haven The dollar index slid 0.2% to 96.96, as the euro rose 0.3% versus the greenback to $1.1279 . The dollar, however, gained 0.1% against the yen to 107.56. ======================================================== Currency bid prices at 8:57AM (1257 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1274 $1.1250 +0.21% +0.57% +1.1302 +1.1248 Dollar/Yen JPY= 107.5800 107.4600 +0.11% -1.18% +107.5800 +107.3400 Euro/Yen EURJPY= 121.30 120.90 +0.33% -0.53% +121.4300 +120.7700 Dollar/Swiss CHF= 0.9441 0.9457 -0.17% -2.45% +0.9464 +0.9427 Sterling/Dollar GBP= 1.2502 1.2470 +0.26% -5.71% +1.2529 +1.2462 Dollar/Canadian CAD= 1.3569 1.3585 -0.12% +4.49% +1.3611 +1.3564 Australian/Doll AUD= 0.6926 0.6914 +0.17% -1.35% +0.6943 +0.6905 ar Euro/Swiss EURCHF= 1.0646 1.0640 +0.06% -1.90% +1.0661 +1.0639 Euro/Sterling EURGBP= 0.9015 0.9018 -0.03% +6.64% +0.9032 +0.9006 NZ NZD= 0.6522 0.6475 +0.73% -3.18% +0.6536 +0.6475 Dollar/Dollar Dollar/Norway NOK= 9.4690 9.5133 -0.47% +7.88% +9.5302 +9.4396 Euro/Norway EURNOK= 10.6782 10.7025 -0.23% +8.54% +10.7260 +10.6480 Dollar/Sweden SEK= 9.2847 9.3064 -0.03% -0.67% +9.3157 +9.2378 Euro/Sweden EURSEK= 10.4685 10.4716 -0.03% +0.00% +10.4800 +10.4313 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci)
NEW YORK The dollar retreated on Wednesday in choppy trading, as generally solid U.S. economic data and improving European numbers diminished its appeal as a safe haven, though the currency's outlook remained upbeat given renewed risks posed by the novel coronavirus.
* ADP jobs report in June shows hiring * U.S. manufacturing data rises * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, July 1 The dollar slipped on Wednesday in choppy trading, with the market having a modest appetite for risk-taking amid generally upbeat U.S. data and improving European economic numbers. The greenback fell against currencies that perform well in times of times of risk appetite such as the Australian, New Zealand, and Canadian dollars, as well as sterling. However, moves in the currency market have little conviction, as doubts mounted about a much-anticipated global economic recovery given the resurgence of U.S. cases of COVID-19, the illness caused by the novel coronavirus, and the threat of renewed lockdowns in U.S. states deemed hot spots. "There's definitely a risk-on tone to the market, which continues to bet on the fact that we're past the worst point of COVID. But I think the jury is still out on that judgment," said Boris Schlossberg, managing director at BK Asset Management in New York. "There's a significant risk of reclosing some of the states. There's still a lot of risk-off flows, and the dollar could be the beneficiary of those flows," he added. The dollar reacted little to the ADP National Employment Report, which showed private payrolls increased by 2.369 million jobs last month. Data for May was revised upward to show payrolls surging 3.065 million, in line with a surprise rebound in job growth reported by the government, instead of tumbling 2.76 million as previously estimated. The dollar did lose ground as a safe haven, after U.S. manufacturing data showed a reading that suggested an expansion for the month of June. In Europe, IHS Markit's final euro zone Manufacturing Purchasing Managers' Index (PMI) moved closer to the 50 mark separating growth from contraction in June with transmission rates of the coronavirus falling in much of Europe and economies opening. Germany's manufacturing sector also contracted at a slower pace as Europe's largest economy lifted restrictions. In midmorning trading, the dollar was down 0.3% against a basket of currencies at 97.145. Although the dollar has acted as a haven currency for much of the coronavirus crisis, U.S. fundamentals have played a bigger role recently, meaning it can appreciate on better-than-expected data. Against the yen, the dollar fell 0.5% to 107.42 yen. Analysts said the yen's rise was safe haven-related given the declining stock markets, especially in Asia. The euro, meanwhile, rose 0.3% to $1.1258, after a rally in which the euro gained 6% against the dollar in May and early June. The Australian and New Zealand dollars both rose against the greenback. ======================================================== Currency bid prices at 10:10AM (1410 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1258 $1.1231 +0.24% +0.43% +1.1262 +1.1186 Dollar/Yen JPY= 107.4400 107.9200 -0.44% -1.30% +108.1600 +107.3700 Euro/Yen EURJPY= 120.96 121.22 -0.21% -0.80% +121.4700 +120.2700 Dollar/Swiss CHF= 0.9457 0.9471 -0.15% -2.28% +0.9493 +0.9458 Sterling/Dollar GBP= 1.2439 1.2399 +0.32% -6.18% +1.2442 +1.2360 Dollar/Canadian CAD= 1.3569 1.3573 -0.03% +4.49% +1.3593 +1.3545 Australian/Doll AUD= 0.6936 0.6902 +0.49% -1.21% +0.6938 +0.6878 ar Euro/Swiss EURCHF= 1.0651 1.0641 +0.09% -1.87% +1.0651 +1.0613 Euro/Sterling EURGBP= 0.9050 0.9057 -0.08% +7.05% +0.9079 +0.9022 NZ NZD= 0.6480 0.6452 +0.43% -3.80% +0.6482 +0.6441 Dollar/Dollar Dollar/Norway NOK= 9.5198 9.6150 -0.99% +8.45% +9.6367 +9.5203 Euro/Norway EURNOK= 10.7217 10.8110 -0.83% +8.98% +10.8280 +10.6990 Dollar/Sweden SEK= 9.3024 9.3188 +0.05% -0.48% +9.3771 +9.3004 Euro/Sweden EURSEK= 10.4756 10.4699 +0.05% +0.06% +10.5007 +10.4467 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Elizabeth Howcroft in London)
NEW YORK, June 30 The U.S. dollar's share of currency reserves reported to the International Monetary Fund rose to 61.9% in the first quarter from the year-ago period, data released on Tuesday showed, as central bankers amassed the greenback in the wake of the coronavirus pandemic.
NEW YORK The dollar slipped on Tuesday, alternating between gains and losses, as markets digested less bearish comments from U.S. monetary officials along with a more dire prognosis from the country's top medical expert on the spread of the novel coronavirus.
* Dollar posts losses at quarter-end, month-end * Euro zone inflation remains weak * UK posts worst quarter since 1979 * Weak sentiment amid pandemic worries * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, June 30 The dollar firmed modestly on Tuesday, lifted by renewed concerns about the spread of the novel coronavirus, as countries around the world and some U.S. states imposed new lockdowns, stalling their paths to economic recovery. Some analysts said the dollar may have also benefited from the month-end and quarterly-end rebalancing flows. That said, the dollar was on track to end both the second quarter and the month of June on a negative note. Investors sold the dollar and bought currencies that benefited from higher risk appetite as countries during the period looked to reopening their economies and anticipated developments on a new vaccine for the virus. "Risk is off a little bit, so you're seeing the dollar gaining a little bit. But it's not a crazy risk-off day," said John Doyle, vice president of dealing and trading, at Tempus, Inc. in Washington. "There are new concerns. The warnings from the WHO, smaller headlines that added to a bigger story such as new lockdowns in places that you think may be past it," he added. The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared to the previous seven days, with 21 states reporting positivity test rates above the level that the World Health Organization has flagged as concerning. WHO President Tedros Adhanom Ghebreyesus said the coronavirus pandemic is far form being over even though many countries have made some progress. In late morning trading, the dollar index was up 0.1% at 97.530, holding onto overnight gains after upbeat U.S. home sales data boosted Wall Street. On the quarter and month, the dollar was on pace for losses of 1.4% and 0.8% respectively. The dollar also gained versus the yen, up 0.1% at 107.725 The euro, meanwhile, fell 0.3% against the dollar to $1.1212, pressured by data showing underlying price pressures dropped again in the euro zone. That underscored fears that consumer price growth will remain anaemic for years. Over the quarter, the European currency staged a 1.6% comeback after falling by a similar margin during the first three months of the year marked by the coronavirus financial market crash. For the month of June, the euro was up 0.9%. Traders said there remains a barrier of $1.1200 for the euro on the downside Sterling reversed losses against the dollar to trade up 0.2% at $1.2328. Earlier in the session, the pound lost ground after Britain's Office for National Statistics said the economy shrank by 2.2% between January and March, its worst performance since 1979, as households slashed their spending. The safe-haven Swiss franc gained a little bit against the dollar. The greenback was last at 0.9499 franc, down 0.2%. ======================================================== Currency bid prices at 10:34 AM (1434 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1219 $1.1240 -0.19% +0.08% +1.1252 +1.1192 Dollar/Yen JPY= 107.6700 107.5600 +0.10% -1.09% +107.7900 +107.5300 Euro/Yen EURJPY= 120.81 120.92 -0.09% -0.93% +121.1700 +120.5900 Dollar/Swiss CHF= 0.9487 0.9511 -0.25% -1.97% +0.9532 +0.9486 Sterling/Dollar GBP= 1.2343 1.2296 +0.38% -6.91% +1.2347 +1.2259 Dollar/Canadian CAD= 1.3647 1.3657 -0.07% +5.09% +1.3699 +1.3650 Australian/Doll AUD= 0.6873 0.6864 +0.13% -2.11% +0.6885 +0.6834 ar Euro/Swiss EURCHF= 1.0646 1.0692 -0.43% -1.90% +1.0699 +1.0643 Euro/Sterling EURGBP= 0.9087 0.9138 -0.56% +7.49% +0.9144 +0.9088 NZ NZD= 0.6420 0.6419 +0.02% -4.69% +0.6430 +0.6386 Dollar/Dollar Dollar/Norway NOK= 9.6923 9.6711 +0.22% +10.41% +9.7682 +9.6666 Euro/Norway EURNOK= 10.8760 10.8720 +0.04% +10.55% +10.9500 +10.8650 Dollar/Sweden SEK= 9.3273 9.3280 -0.21% -0.21% +9.3872 +9.3201 Euro/Sweden EURSEK= 10.4655 10.4872 -0.21% -0.04% +10.5240 +10.4624 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Julien Ponthus in London; Editing by Andrea Ricci)
Australian officials are closing the border between Australia's two most populous states from Tuesday for an indefinite period as they scramble to contain an outbreak of the coronavirus in the city of Melbourne.