• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Towering dollar after solid jobs data leaves peers struggling

by January 13, 2025
written by January 13, 2025

By Rae Wee

SINGAPORE (Reuters) – The dollar began the week on a strong note on Monday, leaving its peers languishing near multi-year lows after a blowout U.S. jobs report that underlined the outperformance of the world’s largest economy versus the rest of the world.

The euro and the New Zealand dollar were pinned close to a more than two-year trough at $1.0242 and $0.5565, respectively, in the early Asian session. Trading was thinned with Japan markets closed for a holiday.

The Australian dollar struggled to break away from its weakest level in over four years of $0.6139. It last traded 0.1% higher at $0.6153.

Data on Friday showed U.S. job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1% as the labour market ended the year on a solid footing, leaving traders heavily scaling back bets of Federal Reserve rate cuts this year.

“This latest round of data underlines the fact that U.S. economic exceptionalism remains a key market theme to start 2025,” said Nick Rees, head of macro research at Monex Europe.

“The U.S. labour market has stabilised but is not continuing to unwind, and that combined with upside inflation risks stemming from the new (Donald) Trump administration … should support an extended pause to easing by the FOMC.”

Markets are now pricing in just 27 basis points worth of Fed rate cuts this year, down from roughly 50 bps at the start of the year.

Adding to expectations of a less aggressive easing cycle is the view that U.S. President-elect Donald Trump’s plans for hefty import tariffs, tax cuts and immigration restrictions could stoke inflation. He returns to the White House in a week.

Ahead of that, data on U.S. inflation is due on Wednesday, where any upside surprise could threaten to close the door on easing altogether. A slew of Fed officials are also due to speak this week.

The U.S. dollar was firm at 109.67 against a basket of currencies, hovering near its strongest since November 2022.

Against the dollar, the yen fell 0.12% to 157.92. The scale of the yen’s decline was mitigated by news that Bank of Japan policymakers could raise their inflation forecast at a policy meeting this month as a prelude to hiking rates again.

Sterling last rose 0.07% to $1.2204 but strayed not too far from a 14-month low of $1.2239, also pressured by concerns at home over rising borrowing costs and growing unease over Britain’s finances.

“It feels like all roads lead to a lower GBP, and rallies should be contained and swiftly sold,” said Chris Weston, head of research at Pepperstone.

In China, the offshore yuan was little changed at 7.3605 per dollar.

The People’s Bank of China suspended treasury bond purchases on Friday, briefly lifting yields and spurring speculation it is stepping up defence of the Chinese currency.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Shares slip in Asia, dollar firm as inflation, earnings loom
next post
Insignia shares rise on sweetened offer from Bain; bidding war intensifies

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Bond yields dip, S&P 500 ends up; CPI, earnings ahead
    • ECB’s Nagel cautions against too hasty action on rates

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy