08 Oct 2021
The U.S. Dollar moved up against major rivals on Friday ahead of the payrolls report due later today.
The non-farm payrolls data is forecast to show further improvement in the labour market, with a forecast 500,000 jobs added last month, even though in a Reuters poll estimates range between 250,000 and 700,000.
Following last month’s Federal Open Market Committee meeting, Chair Jerome Powell stated the impending payrolls report need not be “a knock-out, great, super-strong” report, but it would need to be “reasonably good”.
The Fed stated it will likely start tapering its monthly bond purchases as soon as next month, followed by rate hikes possibly next year.
The Dollar rose 0.26% to 111.91 Yen, touching 111.93, the highest level so far this month, bolstered by higher Treasury yields. The benchmark 10-year note reached 1.6010% for the first time since June.
Elsewhere, the Euro edged up to $1.1550, after plummeting to a 14-month low on Wednesday of $1.1529, Reuters reports.
The Australian Dollar fell 0.22% to $0.7297, following a 0.55% increase on Thursday. It previously touched $0.7324 for the second consecutive day, the strongest level since 16 September.
The Aussie Dollar has made “a decent go at breaking higher,” but it’s about whether it can stay around $0.7315 following several failed attempts in 2021, said Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.
The Pound dropped 0.1% to $1.3600, holding on to the majority of Thursday’s 0.26% gain, when the Bank of England Chief Economist Huw Pill announced inflation pressures were stronger than initially forecast, fuelling predictions for a rate rise by February.
Moreover, there was little change to the Canadian Dollar at C$1.25515 per Dollar, after previously hitting a one-month high of C$1.2534 following rising oil prices.