Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dollar on backfoot; jobs data fails to impress
Published in Daily News Egypt on 08 - 03 - 2011

SYDNEY: The dollar struggled against a basket of major currencies early in Asia on Monday after failing to get a boost from data showing a rebound in US jobs, while the euro stayed supported on expectations of an interest rate hike next month.
The closely watched non-farm payrolls report on Friday showed an increase of 192,000 jobs as private employers hired 222,000 workers, the most since April. That took the jobless rate down to a nearly two-year low of 8.9 percent.
"The market was prepared for a mammoth home run and an arms-raised victory lap. What it got was some good solid contact that resulted in a single base hit. Still good, but a bit disappointing given the pre-payrolls hype," said David Watt, strategist at RBC Dominion Securities.
Strong jobs growth is seen necessary for the Federal Reserve to end its second round of quantitative easing, which is equivalent to easing interest rates.
In contrast, the inflation-wary European Central Bank flagged last week that it could raise interest rates as early as next month, a far more hawkish tone than what many in the markets were prepared for.
Even ahead of the ECB and US jobs numbers, currency speculators had boosted bets in favor of the euro and raised bets against the dollar.
The dollar index, which tracks its performance against a basket of major currencies, edged down 0.05 percent to 76.360, holding not far from a four-month trough of 76.275 set last Friday.
Against the yen, the dollar traded at 82.28, having fallen from Friday's session high around 83.00. However, good support is seen around 81.60, a level that held after several tests in late February and early March.
The euro was at $1.3991 after briefly popping above $1.40 for the first time since November 8. This has put the November high of $1.4283 within sight.
"Despite signs of a recovery in the U.S., the Fed will continue to fight growth risks while the ECB will fight inflation risks," BNP Paribas analysts wrote in a report.
"With the ECB signaling a rate hike in April to alleviate inflationary pressures, EUR/USD should remain well-supported as interest rate differentials work in favor of EUR."
The New Zealand dollar, however, remained a major underperformer as markets were braced for an interest rate cut by the Reserve Bank of New Zealand on Thursday.
Some market players expect the RBNZ to cut by as much as 50 basis points in an attempt to cushion the economy from the effects of the devastating earthquake, which the Treasury has estimated will cost up to $15 billion.
"There is a bit of kiwi selling this morning. I personally think there'll be a rate cut, but our economists are saying no. I'm happy to sell any kiwi rallies," a trader at a U.S. investment bank said.
Markets were also keeping a wary eye on escalating tensions in Libya after troops loyal to Muammar Qaddafi launched counter-offensives against rebel-held towns, increasing fears that Libya is heading for a civil war rather than the swift revolutions seen in Tunisia and Egypt.


Clic here to read the story from its source.