The dollar traded near the strongest level in almost six years versus the yen on speculation U.S. employment data tomorrow will back the case for the Federal Reserve to raise interest rates next year.
A gauge of the greenback reached a 14-month high against major peers yesterday as 10-year Treasury yields rose above 2.5 percent for the first time in a month. The pound traded near the lowest level since November after a poll of voters in Scotland provided fresh evidence of a swing away from the U.K. in a referendum next week on independence. A measure of currency volatility climbed to a six-month high.
“The Fed is likely to raise rates by mid-2015, while other countries like Japan are forced to still ease,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The dollar will be bought as the U.S. is likely to be the sole winner.”
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.