|

USD edges higher ahead of jobs – Scotiabank

The US Dollar (USD) is tracking a little higher ahead of the US jobs report. After losing ground broadly on Thursday, markets baulked at pushing the USD more significantly lower (and through some key support points) ahead of the jobs data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

USD broadly higher into the latest jobs report

“USD gains through the overnight session are concentrated in the AUD and NZD. Reports indicating that President-elect Trump had nominated David Perdue as his China ambassador may have weighed on sentiment for both. The CNY is down slightly on the session as well. But Perdue brings a lot of business experience in the region and a has taken a co-operative stance on China relations in the past. A solid rise in Japan’s base wage data in October boosted BoJ rate hike expectations but did nothing for the JPY which softened 0.3% on the session. Renewed volatility in the KRW overnight may be a factor in regional FX volatility.”

“In Europe, meanwhile, French assets continue to recover from this week’s chop; the CAC 40 is up 1.4% and OATs are outperforming Bunds by 3-4 bps. US Non-Farm Payrolls are expected to rebound from October’s soft 12k rise, with the street looking for a 220k gain, according to the Bloomberg consensus. The ‘whisper’ number is closely aligned with expectations (217k). There were significant downward revisions to the prior two months’ data with the October release (-111k), however, and an upward revision to the weather-affected October data will be expected today.”

“But another disappointing overall report will pose a challenge for Fed policymakers, some of whom have expressed concern about stalled progress on inflation in recent months. Swaps are pricing in 16-17bps of easing for this month’s policy decision currently. Beyond the data, the USD remains prone to some seasonal softness. A solid jobs report may lift the DXY back to the mid-106s. A disappointing outcome may drive the index towards support at 105.30.”

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD: Gains remain capped below 1.1800

EUR/USD consolidates its upside below 1.1800 in the European trading hours on Monday. The pair trades listlessly amid a tepid market mood, despite a broadly subdued US Dollar. Mid-tier US Pending Home Sales are next in focus. 

GBP/USD hovers around 1.3500 amid cautious markets

GBP/USD is oscillating around 1.3500 in the European session on Monday, supported by broad US Dollar softness. But the upside appears limited due to thin market conditions heading into the New Year holiday break. 

Gold corrects from record high as profit-taking sets in

Gold price retreats from a record high near $4,550 in European trading on Monday as traders book some profits ahead of holidays. If the US Dollar finds renewed demand, it could also weigh on the precious metal, as it makes Gold more expensive for non-US buyers.

Bitcoin, Ethereum, and XRP bulls regain strength

Bitcoin, Ethereum, and Ripple record roughly 3% gains on Monday, regaining strength mid-holiday season. Despite thin liquidity in the holiday season, BTC and major altcoins are regaining strength as US President Donald Trump pushes peace talks between Russia and Ukraine. The technical outlook for Bitcoin, Ethereum, and Ripple gradually shifts bullish as selling pressure wanes.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.