Dollar Strengthens Ahead Of U.S. Jobs Data

The U.S. dollar climbed against its major counterparts in the Asian session on Friday, as investors awaited today’s jobs report that would help determine about the Fed rate cut later this month.

U.S. employment is expected to increase by 160,000 jobs in June after an increase of 75,000 jobs in May. The jobless rate is expected to hold at 3.6 percent.

The report could determine if the Federal Reserve cuts rates later this month to shore up the world’s largest economy as trade tensions escalate.

The ADP employment data, seen as a precursor to jobs data, missed expectations, fueling expectations that the Fed will start cutting rates soon.

On the trade front, White House economic adviser Larry Kudlow told reporters Thursday that top-level trade officials ‘will be very involved now’ in restarting discussions with their Chinese counterparts next week.

The greenback climbed to a 3-day high of 107.96 against the yen, from a low of 107.76 hit at 5:00 pm ET. The next possible resistance for the greenback is seen around the 111.00 mark.

The greenback appreciated to 0.9864 against the franc, after falling to a 2-day low of 0.9843 at 5:45 pm ET. Continuation of the greenback’s uptrend may see it challenging resistance around the 1.00 region.

Reversing from a low of 1.1288 set at 6:45 pm ET, the greenback reversed direction and rose to a 2-day high of 1.1272. If the greenback extends rise, 1.11 is possibly seen as its next resistance level.

The greenback strengthened to 2-day highs of 0.6672 against the kiwi and 0.7014 against the aussie, from Thursday’s closing values of 0.6687 and 0.7029, respectively. The greenback is likely to face resistance around 0.64 against the kiwi and 0.69 against the aussie.

The greenback that ended yesterday’s deals at 1.3046 against the loonie edged higher to 1.3067. On the upside, 1.33 is possibly seen as the next resistance for the greenback.

On the flip side, the greenback dropped to 1.2588 against the pound, from a high of 1.2571 seen at 5:00 pm ET. Next key support for the greenback is seen around the 1.27 area.

Looking ahead, U.K. Halifax house price index for June will be out in the European session.

The U.S and Canadian jobs data and Canada Ivey PMI, all for June, are due in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com