Forex – Dollar Remains Supported Ahead of U.S. Jobs Data

Dollar higher vs. rivals with eyes on NFP report

Investing.com – The dollar remained higher against other major currencies on Friday, as investors were eyeing the release of highly-anticipated U.S. employment data due later in the day.

The greenback came under pressure after the release of mixed U.S. economic reports on Thursday.

Payrolls processor ADP reported on Thursday that U.S. private employers added in December, well above economists’ expectations.

A separate report showed that U.S. jobless claims increased by 3,000 last week to , disappointing expectations for a 6,000 decline.

The U.S. dollar briefly recovered after Fed policymakers acknowledged, in the of the Federal Reserve’s December meeting released Wednesday, that the U.S. labor market and economic activity remain strong, despite persistently low inflation.

The minutes seemed to suggest that the central bank will continue to raise rates gradually but the pace could pick up if inflation rises.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 91.77 by 05:15 a.m. ET (09:15 GMT).

The euro and the pound turned lower, with down 0.12% at 1.2052 and with easing 0.08% to 1.3536.

Data earlier showed that euro zone inflation in December, while another report showed that German increased more than expected in November.

The yen and the Swiss franc remained weaker, with up 0.39% at 113.18 and with gaining 0.31% to 0.9769.

Elsewhere, the Australian dollar remained lower, with down 0.15% at 0.7852, while held steady at 0.7158.

Earlier Friday, the Australian Bureau of Statistics said that the country’s trade deficit widened to in November from A$302 million in October, whose figure was revised from a previously estimated A$105 million.

Analysts had expected the trade deficit to widen to only A$550 million in November.

Meanwhile, edged up 0.10% to 1.2502.

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