Dollar the weakest in 3 days after jobless claims data and ahead of payroll tomorrow
Laurence Hayward " | October 3, 2019
The dollar is lower in the third consecutive session after jobless claims rose to 219k, likely a result of the ongoing GM strikes. The WTO approved the US request to raise tariffs on European goods. The pound popped on uplifting Brexit news and the euro is slightly stronger versus a lower dollar. Falling oil prices are a drag on some of the producing countries' currencies. US awaits non-farm payroll data out tomorrow.
October 3, 2019
EUR/USD 1.0997 GBP/USD 1.2406 USD/CAD 1.3347 AUD/USD 0.6737 USD/JPY 106.53 USD/CNH 7.1285 USD/ILS 3.4976 USD/MXN 19.8047 USD/CHF 0.9966 USD/INR 70.8962
The dollar is lower for a third session after falling below the 99.00 level. There could be a new trade war between the US and Europe after the World Trade Organization approved the US request to raise tariffs on European goods worth up to $7.5 B. This is a reaction to the government subsidies that Airbus receives in Europe. A US Treasury official said the US is willing to negotiate a removal of the tariffs. Jobless claims rose by 4,000 to 219,000 – a four week high.GBP
Northern Irish DUP MP Dodd said he will support Boris Johnson’s new Brexit plan. The plan will go for a vote before Parliament today and is expected to pass fairly easily. EU Commissioner Junker welcomed the proposal, but the Irish PM said the plan does not meet the agreed objectives of the back stop. The composite UK PMI fell to 49.3 from 50.2. Below 50 signifies contraction. The pound rose to the highest level a week on the uplifting Brexit news.EUR
German Central Bank head Weidmann disputed Mario Draghi’s comment that disagreement between ECB officials could undermine monetary policy when he said “intensive discussion” about things like QE is normal and necessary. The euro is slightly higher versus the dollar.CAD
The Toronto housing market had its biggest gain in 21 months in September. The Canadian dollar continued weakening as oil fell below $52 a barrel as measured by WTI.ASIA/PACIFIC
The unrest continues in Hong Kong after a policeman shot a protester who had hit him with a rod. Hong Kong police groups have asked the government to put curfews in place. The CNH strengthened slightly. The yen strengthened below 107 to the dollar.