LONDON/NEW YORK (Reuters) – The dollar was up against most currencies as investors were consolidating their positions and awaiting US jobs data for March due tomorrow, a holiday session, to assess how they could affect the monetary policy of the Federal Reserve and potentially trigger a market reaction.
The expected March non-farm payrolls report tomorrow, when many markets are closed, follows disappointing ISM manufacturing and services data and yesterday’s private sector employment data.
Weak US economic signals reinforce the prospect that the Federal Reserve will reverse course on rate hikes.
For the markets, this could be a very volatile session.
At around 17.15, the dollar index, which this week reached its lowest level in two months, also thanks to the drop in Treasury yields, fluctuated around parity, at 101.88.
The yen, supported at least in part as a safe haven, weakened against the dollar, up 0.3% to 131.72 yen.
The pound dropped 0.2% to 1.2436 dollars, while the euro rose by 0.1%, to 1.0920 dollars.
(Translated by Chiara Scarciglia, editing by Alessia Pé)