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Dollar Down, but Set for Weekly Gain as Investors Await U.S. Jobs Report -Breaking

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© Reuters.

By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia, but set to record a second consecutive week of gains. Investors are now awaiting the U.S. Jobs Report, which may change when the Federal Reserve raises interest rates.

That tracks the greenback relative to a basket other currencies fell by 0.02% at 94.323 in 12:57 PM ET (4:57 GMT)

This pair fell 0.08% to 113.66

Both the pair fell 0.04% to 0.7396, and the pair dropped 0.09% at 0.7095.

Both the pairs increased by 0.05% to 6.4004, and fell by 0.02% at 1.3495.

A week full of decisions by central banks, Thursday’s decision from the Bank of England ended at 0.10%. The market was caught off guard by the unexpected move and the pound fell to its lowest level in 11 years.

The key central banks did not raise their interest rates as expected and investors were forced to reset their expectations of monetary policy during this week. Christine Lagarde from the European Central Bank, dismissed speculations that interest rates would rise as soon as October 2022. However, she said it is very unlikely that this will happen within that timeframe.

Across the Atlantic, the said it would be “patient” on interest rate hikes, while beginning asset tapering, as it handed down its decision on the same day as Lagarde’s comments.

With job market recovery one of the Fed’s conditions for an interest rate hike, investors now await the latest U.S. jobs report, including , that is due later in the day.

In a note, Westpac analysts stated that the Fed had delivered a “dovish taper” but that the dollar was still in better position than others.

According to the note, “Payrolls for this week should at least be as strong and consensus given signs recovery momentum is accelerating again,” which makes dips into mid-93s a buy opportunity for the Dollar.

Asia Pacific’s Bank of Japan set the mood for Tuesday with a cautious decision. While the Bank of Japan may be one of the most slow central banks to normalize their policy, it is expected that the Bank of Japan would be the best for the yen. Investors have been cutting bets on other countries.

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