Dollar index holds gains after stronger than forecasted US jobs data report for April. The index which tracks the greenback against six currencies was up 0.09% at 97.922.
Better-than-expected non-farm payrolls data tends to boost the dollar, as it would reinforce the economy’s strength, and weigh on gold.
The pound fell to the day’s low of $1.2988 as the dollar rallied after better-than-expected US jobs data.
Some traders speculated the dollar would gain further if U.S. jobs data on Friday came in better than expected.
A positive tone on U.S.-China trade negotiations to end some tariffs has also aided traders’ sentiment. A possible deal to end a long-draw dispute between the two economic giants may further boost risk appetite. Market participants keep a close watch on U.S.-China trade talks.
Japan is out for a week of holidays and trading will resume next Tuesday. China will be back in action on Monday. Tokyo is one of the world’s top five currency trading centres. Therefore, traders are worried that the absence of Tokyo might fuel some exaggerated moves in foreign exchange markets.
START TRADINGStrong US jobs data sends dollar slightly higher
It has been a quiet week for major currencies. Volatility was at multi-year lows and liquidity was limited with Japan and China on extended holidays.
The Australian and New Zealand dollars have weakened on speculation both countries will cut interest rates next week.
The euro was down 0.2% at $1.1155, having eased back from $1.1219 overnight, though it was still stronger on the week.
Sterling fell further from two-week highs on Friday. The British pound has gained 1.3% amid tentative hopes of a breakthrough in Brexit talks. The British currency had recovered to $1.3021 by 1350 GMT. It had reached above $1.31 earlier in the week. Against the euro it was unchanged at 85.76 pence.
In commodities, oil prices poised for weekly drop as U.S. output climbs. Surging U.S. output countered production losses in sanctions-hit Iran and Venezuela. Brent crude oil futures were at $70.08 a barrel at 0835 GMT, down 67 cents. It set for their first weekly loss after five weeks of gains. U.S. West Texas Intermediate (WTI) crude futures were down 41 cents at $61.40, poised for a second straight weekly decline.
Gold was steady on Friday as the market awaited U.S. non-farm payrolls data. However, it was headed for its biggest weekly decline since the end of March, as the dollar gained. Spot gold was steady at $1,270.59 per ounce, as of 1144 GMT. Gold has fallen more than 1% in the last two sessions and is down over 1 percent this week
Silver was up 0.3% at $14.67 per ounce, holding close to a more than four-month low touched in the previous session.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money