The US Dollar is poised to record a losing week, the first in the last three, despite moving higher in Asian trade. Analysts say that the latest jobs data spoiled sentiment for the greenback. The US Department of Labor reported that claims for unemployment benefits missed analysts' predictions for both new and continuing claims. The data showed that initial claims came in at 793,000, more than the 757,000 expected; moreover, the previous data was revised higher. Continuing claims came in at 4.545 million, higher than 4.49 million expected; like the initial claims, continuing claims was upwardly revised. That news led markets to consider that the pace of the economic recovery was not as robust as thought.
In Tokyo trading as of 9:31 am, the US Dollar Index was higher at 90.43 .DXY, a gain of 0.02%; the Index is used as a measure of the greenback's relative strength. The USD/JPY was trading at 104.800 Yen, up 0.05%; the pair has ranged from a low of 104.713 Yen to a high of 104.814 Yen. The AUD/USD was lower at $0.7750, down 0.0516%, off the session trough of $0.77447, while the high was recorded at $0.77653. The NZD/USD was also lower at $0.7227, a loss of 0.029%; the pair has ranged from $0.72216 to $0.72403 in today's session.
Differing Opinions on US Outlook
Economists are also pointing to the possible repercussions of the Biden administration's pandemic relief program. Opinions are diverse as to the outcome, with high expectations that the economy will likely recovery at a faster pace given the plans to roll-out the vaccine coverage. At the other end, some economists worry about the potential rise in inflation given the size of the stimulus package coupled with the Federal Reserve's easy money position.