Forex - US dollar up vs euro, flat vs yen in Asian trade ahead of US jobs data
07.08.2005, 04:47 AM
SINGAPORE (AFX) - The US dollar firmed against the euro in late afternoon trade here with the market shrugging off a short-lived downward blip in the greenback in the wake of yesterday's London bombings with players now focused on tonight's US June non-farm payroll data, dealers said
The bombs killed more than 30 people and brought the city's transport system to a halt early in the London session. It also rattled global financial markets with one of the blasts taking place in the heart of London's financial district. 'The initial reaction in the currency markets was for sterling and the US dollar to weaken, while the Swiss franc firmed across the board on safe-haven buying,' UBS told its clients in a morning note.
The dollar regained some composure in New York trading time and continued to rebound when Asian markets opened, although sterling remained under pressure. With no sign of any follow up bombings, Asian markets shifted their attention to the key US nonfarm payrolls data due tonight, with most expecting a strong increase in jobs.
'We think the dollar is broadly in recovery mode and yesterday's events could add momentum to its rise, though non-farm payrolls data tonight will be key to moves next week,' UBS said.
Non-farm payrolls are expected to rise 195,000 after the soft 78,000 gain in May which pulled the second quarter average below the first quarter despite a strong April gain, according to a Market News International survey of economists.
Sterling remained under pressure in Asia but has held remarkably well despite concerns of what how the blasts would affect the UK economy. The blasts happened just before the Bank of England announced it was keeping its benchmark interest rate unchanged.
'The terrorist attacks on London will quite obviously be in the media limelight for several more days,' said Bank of Tokyo-Mitsubishi's Singapore-based economist Wong Keng Siong. 'The key issue to note, however, is that the overall infrastructure at the world's largest financial center remains intact,' he said.
'Despite the human tragedy, therefore, the economic impact is likely to be fairly limited.' Singapore 3.05 pm (0705 GMT) Tokyo 1.05 pm (0405 GMT)
US dollar yen 112.31 unchanged
sfr 1.3023 up from 1.2984
Euro usd 1.1913 down from 1.1934
stg 0.6842 down from 0.6850
yen 133.77 down from 134.11
sfr 1.5512 up from 1.5499
Sterling usd 1.7406 down from 1.7417
yen 195.42 down from 195.65
sfr 2.2663 up from 2.2619
Australian dollar usd 0.7378 up from 0.7376
stg 0.4238 up from 0.4233
yen 82.860 down from 83.880
Source:http://www.forbes.com
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