The U.S. dollar was steady against major currencies on Friday. Traders were waiting for key U.S. jobs data, expecting that it will shed light on the strength of economic recovery from the Covid-19 pandemic.
Thus far, the dollar has managed to stop its recent slide. However, analysts warn that sentiment remains weak due to worries about the strength of U.S. economic growth. Speculation that the Federal Reserve will keep rates low for a very long time doesn’t help the matters.
Junichi Ishikawa, the senior foreign-exchange strategist at IG Securities in Tokyo, stated that the greenback has rebounded against the Euro and could continue to increase a little more.
Despite that, he thinks that the dollar will fall again, along with yields because the Fed seems ready to stick with low-interest rates. However, stocks may rise.
The dollar index saw some change at 92.774 against a basket of six major currencies on Friday. The greenback traded at 0.9099 Swiss francs. And the currency stood at 106.18 against the Japanese yen. The U.S. currency’s downtrend may continue for at least another three months due to the outlook for the Fed’s monetary policy.
How did the Euro and the Sterling fare?
The Euro was also in focus as investors were on the lookout for the data on German industrial orders, which is due soon. It could provide more clues about the eurozone economy.
Against the common currency, the dollar traded at $1.1849 on Friday. Meanwhile, the British pound was at $1.3281. It retreated from its highest level in nearly a year due to a lack of progress in trade negotiations between the European Union and Britain.
The Antipodean currencies initially declined slightly. Investors lost confidence as a sell-off in U.S. tech shares hit Asian stocks. Despite that, the looming U.S. jobs data brought traders back to a more measured posture.
The Australian dollar steadied at $0.7272 on Friday, supported after local retail sales accelerated in July. The New Zealand dollar erased some losses to trade to $0.6706.