A gauge of the dollar was poised for its biggest weekly gain in more than 16 months before a U.S. government report today forecast to show October payrolls expanded by more than this year’s average.
The Bloomberg Dollar Spot Index climbed to a 5 1/2-year high. The U.S. currency remained above 115 yen for a second day, trading 0.3 percent from a seven-year peak after Bank of Japan Governor Haruhiko Kuroda said this week the central bank will continue easing as long as needed to achieve stable 2 percent inflation. The euro held near a two-year low after European Central Bank President Mario Draghi deepened his commitment to stimulus yesterday. Australia’s currency was set for its first weekly drop in five weeks.
“Should we see a positive payrolls report in line with our forecast, the dollar should rise,” said Takeru Kurokawa, an analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “We could see dollar climb toward 117 yen.”
The dollar traded at 115.17 yen as of 9:24 a.m. in Tokyo, after touching 115.52 yesterday, the highest since November 2007.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was little changed at 1,097.88, set for the highest close since April 2009. The index has advanced 1.6 percent this week, the biggest gain since the period ended June 21, 2013.
The dollar was little changed at $1.2381 versus the euro after touching $1.2365 yesterday, its strongest level since August 2012. Europe’s shared currency was unchanged at 142.57 yen, having strengthened to a 10-month high on Nov. 6.
U.S. employers added 235,000 workers in October, according to a Bloomberg News survey of analysts before today’s Labor Department report. This year’s average is 226,670. Economists predict the jobless rate held at 5.9 percent, the lowest since July 2008.
Australia’s dollar was little changed at 85.66 U.S. cents after sliding to 85.53, its weakest level since July 2010. The Aussie was set for a 2.7 percent slide since Oct. 31, the first weekly decline since the period ended Oct. 3.
Source: Bloomberg (07 Nov 2014 )
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