Forex - US dollar mixed in narrow range ahead of Friday payrolls data |
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Thu, 31 May 2007 01:52
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SYDNEY (XFN-ASIA) - The US dollar was trading mixed against major currencies but in a narrow range, with traders marking time ahead of Friday's non-farm payrolls data for May, dealers said.They said the dollar saw some support overnight following the release of the minutes of the last Federal Open Market Committee (FOMC) meeting on May 9 which showed Fed members remain concerned about inflation.But, dealers said, US bond yields failed to respond, having had already risen sharply over the past month.At 10:30 am Sydney (0030 GMT) the dollar was at 121.49 yen, down from 121.58 in late trade in New York while the euro was at 1.3432 usd, down from 1.3436 usd.Dealers said the non-farms payroll data will be watched for signs that the US economy is moving out of a soft patch, reducing chances of interest rate cuts.The market is looking for 135,000 new jobs being created in May, up from 88,000 in April.The FOMC minutes confirmed that the Fed is not contemplating an interest rate cut and is maintaining a bias to raise interest rates due to continuing concerns over inflation and an expected recovery in economic growth.NAB Capital Markets foreign exchange strategists said short dollar positions have been slashed on expectations of the US economy picking up but further evidence of a recovery will be needed to give the dollar a further leg up.'The US dollar will need some quite upbeat data over coming days to give it a boost,' they said in a market note.The NAB strategists said tonight's release of the second estimate of first quarter gross domestic product growth is unlikely to have a significant impact.'All eyes will be on Friday's non-farm payrolls report for May,' they said.Sydney 10.30 am (0030 GMT)US dollar121.49 yen1.2255 sfrEuro1.3432 usd163.18 yen1.6460 sfr0.6797 stgSterling1.9761 usd240.07 yen2.4213 sfrAustralian dollar0.8226 usd0.4162 stg99.965 yenNew Zealand dollar0.7295 usdbruce.hextall@xfn.com
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Forex - US dollar in right range ahead of US jobs data 