The US dollar has climbed against the Japanese yen as investors await US jobs data. Here are the top lines of what’s happening in the world of forex.<\/p>\n
Yen surrenders some intervention gainsBrent crude settles above $80 a barrel Traders await US payrolls data for clues on Fed rate pathDollar index stuck near six-week lows.<\/p>\n
The US dollar rose against the Japanese yen overnight, helped by safe-haven positioning from investors awaiting details on a proposed deal to end the Iran conflict\u00a0and ahead of tomorrow’s monthly US jobs report.<\/p>\n
The dollar has clawed back some intervention-driven losses that had pushed it to a 13-week low against the yen following joint action by Japanese and US Treasury authorities to prop up the Japanese currency.<\/p>\n
The US dollar was last up 0.44% against the yen at 158.45, for its third straight session of gains after falling to 155.20 on Monday, the lowest since early May.<\/p>\n
Here’s\u00a0John Velis, FX and macro strategist at BNY:<\/p>\n
“The idea that maybe there’s some good news on a ceasefire or a deal in the Persian Gulf has taken some of the dollar premium off with lower oil prices and so forth. It’s very quiet today because I think the markets are waiting for what happens with non-farm payrolls on Friday.”<\/p>\n
The euro was down about 0.28% at $1.1521, and sterling fell 0.15% at $1.34485.<\/p>\n
The dollar index, which tracks the US currency against six major peers, was up 0.31% at 99.97 after a six-week low on Monday.<\/p>\n
Eyes on Gulf tensions<\/p>\n
Tensions continued to play out in the Gulf after Reuters reported a proposed deal\u00a0between Iran and Oman to help end the US-Iran conflict could give Tehran control over inbound traffic through the Strait of Hormuz.<\/p>\n
The US did not immediately comment on the proposal. President Donald Trump\u00a0has said that a deal to reopen the strait was imminent, but officials have repeatedly insisted that they would never agree to Iranian\u00a0control of access to the world’s most important trade route for energy supplies.<\/p>\n
Brent crude rose 3.8% to settle at $82.49 a barrel, although prices remain well below the almost $100-per-barrel level hit in July when attacks resumed following a brief d\u00e9tente.<\/p>\n
Speculators have amassed a near-record net dollar long position in aggregate compared with other major currencies, “leaving positioning prone to a squeeze in the event of dollar-negative developments,” Scotiabank’s Shaun Osborne said in a note, citing US Commodity Futures Trading Commission data.<\/p>\n
Fed direction may depend on payrolls<\/p>\n
Friday’s US employment report for July could provide more clues on the Federal Reserve’s interest-rate path. The US service sector remained strong in July while services-sector employment slowed.<\/p>\n
A divided US central bank\u00a0left rates unchanged last month, but Fed Chairman Kevin Warsh said he was committed to bringing inflation down, leaving the door open to a possible rate hike in September.<\/p>\n
“Any data release after the Fed meeting in July is just very important,” said Francesco Pesole, an FX strategist at ING.<\/p>\n
“Tomorrow’s payrolls could be pretty big for dollar-yen. If it’s a hot print then you would probably start to see a new build up of speculative longs on dollar-yen.”<\/p>\n
US nonfarm payrolls are forecast to have risen by 80,000 last month after an increase of 57,000 in June, according to a Reuters survey of economists. The unemployment rate\u00a0is expected to hold steady at 4.2%.<\/p>\n
Fed Governor Lisa Cook\u00a0said on Wednesday that she was open to raising short-term interest rates to deal with levels of inflation that are “too high.”<\/p>\n
San Francisco Fed president Mary Daly\u00a0said she was “completely supportive” of last week’s decision to hold rates steady, saying more data is needed before the central bank’s September 15-16 meeting.<\/p>\n
– Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"The US dollar has climbed against the Japanese yen as investors await US jobs data. Here are the…\n","protected":false},"author":2,"featured_media":805048,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[2001,64,63,166,2009,99,2005,164,160,2010,2006,2002,1491],"class_list":["post-846179","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-asx","tag-au","tag-australia","tag-australian-dollar","tag-bitcoin","tag-business","tag-dow-jones","tag-economy","tag-live-blog","tag-live-update","tag-nyse","tag-share-market","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/846179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=846179"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/846179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/805048"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=846179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=846179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=846179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}