With the United States and Iran backing away from further military confrontation, traders will focus on monthly US jobs data.
Recent data have showed a pick-up in the U.S. services, falling joblessness claims and solid private hiring. Traders are focused now on December jobs data due at 1330 GMT. The consensus forecast is the United States added 164,000 jobs in December, after 266,000 were added in November.
The Labor Department’s non-farm payrolls report is likely to show U.S. job growth slowed in December. Some of the anticipated slowdown in December is attributed to seasonal volatility associated with a later-than-normal Thanksgiving Day. But the pace of hiring probably remains more than enough to keep the longest economic expansion in history chugging along.
December’s expected gains would lift total job growth for 2019 to more than 2 million, the ninth straight year above that threshold.
Further, U.S. President Donald Trump, who announced last month that the Phase 1 trade deal with China would be signed on Jan. 15, said on Thursday the agreement could be signed “shortly thereafter”.
Forex – Monthly US Jobs Data draws investors’ attention
Investors turned to the closely watched Monthly US Jobs Data for confirmation that the world’s largest economy remains healthy.
The US dollar gained 0.1% on Friday to 97.53, taking its cumulative gains this week to 0.7%, its biggest weekly rise since early November.
The dollar’s gains were particularly pronounced against the Japanese yen and the Swiss franc, against which it has rallied 1.7% and 1% respectively from this week’s lows.
The Australian Dollar rose a third of a percent to $0.68755, although its gains were curbed on bets interest rates will be cut as early as February. Weeks of bushfires have cast a shadow over the broader economy.
The Kiwi dollar also edged up 0.2% to $0.6622.
The pound weakened after a Bank of England policymaker said the British economy’s response to Brexit developments in coming months will determine whether rates were cut further. It was down 0.1% against the dollar at $1.3054.
Oil edged further above $65 a barrel on Friday as concerns about a possible renewed spike in Middle East tensions outweighed rising U.S. inventories and other signs of ample supply.
Brent crude, the global benchmark, was up 24 cents at $65.61 by 1155 GMT, and was heading for its first weekly decline in six weeks, down over 4%. U.S. WTI crude added 11 cents to $59.67.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money