Dollar firms, but gains seen limited ahead of US jobs report

Reuters Tokyo | Updated on January 22, 2018 Published on October 01, 2015


The dollar firmed slightly on Thursday on relief a set of China manufacturing surveys were just a smidgen better than some had expected, but the gains were limited as caution prevailed ahead of key US jobs data on Friday.

The euro remained under pressure after a downbeat eurozone inflation report, while the yen firmed slightly in early Asian trade after the Bank of Japan’s tankan corporate sentiment survey contained both positive and worrying signs.

“The China readings were almost flat, not really an improvement, but a few people might have used the figures as an excuse to increase dollar-long positions with China closed today,’’ said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.

China began its one-week string of National Day holidays on Thursday.

“The big picture is still that the outlook for the global economy remains very subdued, mainly due to weak Chinese growth,’’ Murata said.

The final Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) edged down to 47.2 in September, slightly up from a preliminary reading of 47.0, but still marking its lowest reading since March 2009 and a deterioration from August’s 47.3.

China’s official PMI released separately inched up to 49.8 in September from the previous month’s reading of 49.7, though it still showed contraction for the second straight month.

The dollar was buying 120.07 yen, up about 0.2 per cent from late US trading, erasing early slight losses.

The yen largely shrugged off mixed signals from the BOJ’s closely watched tankan survey showing that confidence at big Japanese manufacturers worsened, leading some to bet that the central bank could take further stimulus steps. But service-sector sentiment improved for the fourth straight quarter to hit the highest level in more than two decades.

Market attention was riveted on the China surveys after the US Federal Reserve opted to refrain from raising interest rates for the first time since 2006 at its meeting last month, citing worries about the global economy, particularly China.

But some investors believe that an improving US employment situation could prompt the central bank to hike as early as this month.

Economists expect Friday’s US non-farm payrolls report to show that employers added 203,000 jobs in September, according to a Reuters poll.

The latest ADP data released overnight supported these expectations, showing U.S. private-sector employers added 200,000 jobs.

Against the dollar, the euro shed about 0.1 per cent to $1.1167, and also slipped about 0.1 per cent to 134.06 yen.

Eurozone prices fell 0.1 per cent on an annual basis in September, falling short of expectations and well below the European Central Bank’s target of just under 2 percent. That raised expectations that the ECB might decided to take further easing measures.

Published on October 01, 2015

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.