Dollar regains traction on rise in U.S. Treasury yields
|The greenback erased intra-day losses made in Asia and European morning and ended Wednesday higher across the board due to rise in U.S. Treasury yields as well as safe-haven usd buying on weakness in U.S. stocks.
Reuters reported U.S. private payrolls increased less than expected in February amid job losses in manufacturing and construction, suggesting the labor market was struggling to regain speed despite the nation's improving public health picture. Private payrolls rose by 117,000 jobs last month, the ADP National Employment Report showed on Wednesday. Data for January was revised up to show 195,000 jobs added instead of the initially reported 174,000.
Versus the Japanese yen, dollar found renewed buying at 106.68 in Australia and rallied to 107.02 in Europe on rise in U.S. Treasury yields before retreating to 106.81 at New York open on profit-taking and cross-buying in jpy. However, the pair then gained to a 7-month high of 107.15.
Although the single currency moved sideways in Asia and then gained to 1.2109 at European open, then to session highs of 1.2112, the pair later fell to 1.2043 in New York on renewed usd's strength before moving broadly sideways.
The British pound went through a volatile session. Although cable dipped to 1.3938 in Asia, price briefly rose to session highs of 1.4006 in Europe on cross-buying in sterling but only to drop to 1.3921 in New York on renewed usd's strength.
Reuters reported Finance Minister Rishi Sunak extended costly emergency programmes to see Britain's economy through the COVID-19 crisis but announced a future tax squeeze on businesses and individuals as he began to focus on the huge hole in the public finances.
Delivering an annual budget speech on Wednesday, Sunak said the economy will regain its pre-pandemic size in mid-2022, six months earlier than previously forecast, helped by Europe's fastest vaccination programme. But it will remain 3% smaller in five years' time than it would have been without the health shock and extra support is needed now as the country remains under coronavirus restrictions, he said.
Data to be released on Thursday :
Australia retail sales, trade balance, imports, exports, Japan consumer confidence, UK Markit construction PMI, EU retail sales, unemployment rate, Canada labor productivity and U.S. initial jobless claims, continued jobless claims, labor costs, productivity, durables ex-defense, durable goods, factory orders, durables ex-transport.
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