FOREX-Dollar edges up after hitting 2-year low; jobs data in focus

Reuters

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 (Updates prices, details)
    * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

    By Caroline Valetkevitch
    NEW YORK, Aug 6 (Reuters) - The dollar was a tad higher on
Thursday after hitting a two-year low earlier in the session and
as investors digested mixed data on U.S. jobless claims ahead of
Friday's nonfarm payrolls report.
    The dollar index, which measures the currency against a
basket of currencies, reached a two-year low of 92.495
overnight. It was last trading 0.1% higher on the day at 92.830
 =USD .
    The move came in the wake of a 4% decline for the index in
July, its biggest monthly percentage drop in a decade, as
investors fled to the euro and other currencies that appeared to
be holding up better as countries around the world grappled with
the coronavirus pandemic.
    The dollar index initially pared gains on Thursday but was
mostly choppy following the claims data, which showed fewer
Americans sought jobless benefits last week. But it also showed
that 31.3 million people were receiving unemployment checks in
mid-July, suggesting the U.S. labor market was stalling.
 urn:newsml:reuters.com:*:nL1N2F71R8
    "The market is mostly just consolidating a little bit after
this amazing weakness we've had of late," said Axel Merk,
president and chief investment officer at Merk Hard Currency
Fund in Palo Alto, California.
    Investors are keen to see further details on the U.S.
employment situation in the Friday's monthly jobs report.
    "Upbeat jobs data could help ease pressure on the dollar.
But if the data should aggravate concerns about the U.S.
economic fragility, it could spell another leg lower for the
currency," Joe Manimbo, senior market strategist at WesternUnion
Business Solutions, wrote in a note on Thursday.
    Investors are also waiting for U.S. lawmakers to agree on a
new package of support related to the coronavirus pandemic.
Republicans and Democrats on Thursday remained far apart on what
to include in another wave of relief, although Senate Majority
Leader Mitch McConnell said the U.S. economy needs an
"additional boost" to cope.  urn:newsml:reuters.com:*:nL1N2F80Q6 
    Analysts worried that programs such as unemployment benefits
are covering up underlying damage to the economy.
    The euro was up 0.1% at $1.1869 against the dollar after
earlier reaching a two-year high of $1.1916  EUR=EBS . 
    In emerging markets, Turkey's lira hit a record low against
the euro. Analysts warned of inflation and predicted state
attempts to aid the currency would struggle.  urn:newsml:reuters.com:*:nL8N2F829J
    "That is a concern because it could have ripple effects
elsewhere," Merk said.
    The Aussie dollar was last up 0.6% at $0.7237 against the
U.S. dollar.  AUD=D3  
    Australia's second-biggest city, Melbourne, started a
six-week total lockdown on Thursday, following a resurgence of
COVID-19 cases.  urn:newsml:reuters.com:*:nL4N2F80OY            
    ========================================================
    Currency bid prices at 3:46PM (1946 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1869        $1.1861     +0.07%         +5.88%      +1.1915     +1.1819
 Dollar/Yen       JPY=        105.5600       105.5700    -0.01%         -3.03%      +105.6900   +105.3100
 Euro/Yen         EURJPY=     125.29         125.25      +0.03%         +2.74%      +125.5800   +124.6900
 Dollar/Swiss     CHF=        0.9104         0.9083      +0.23%         -5.93%      +0.9129     +0.9066
 Sterling/Dollar  GBP=        1.3136         1.3112      +0.18%         -0.93%      +1.3185     +1.3113
 Dollar/Canadian  CAD=        1.3297         1.3264      +0.25%         +2.39%      +1.3322     +1.3243
 Australian/Doll  AUD=        0.7237         0.7191      +0.64%         +3.08%      +0.7239     +0.7175
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0806         1.0775      +0.29%         -0.42%      +1.0821     +1.0753
 Euro/Sterling    EURGBP=     0.9033         0.9044      -0.12%         +6.85%      +0.9053     +0.8985
 NZ               NZD=        0.6684         0.6645      +0.59%         -0.77%      +0.6686     +0.6629
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.9788         8.9499      +0.32%         +2.28%      +9.0171     +8.9043
 Euro/Norway      EURNOK=     10.6588        10.6176     +0.39%         +8.32%      +10.6738    +10.6076
 Dollar/Sweden    SEK=        8.6943         8.6666      +0.35%         -6.99%      +8.7225     +8.6267
 Euro/Sweden      EURSEK=     10.3188        10.2833     +0.35%         -1.44%      +10.3241    +10.2702
 
 (Reporting by Caroline Valetkevitch; additional reporting by
Elizabeth Howcroft in London; editing by Larry King, David
Gregorio and Dan Grebler)
 ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;
Reuters Messaging:
caroline.valetkevitch.thomsonreuters.com@reuters.net))

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