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Forex - Dollar Set to Snap 3-Day Losing Streak as Sterling Slides

Published 01/08/2019, 02:02 PM
© Reuters.
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Investing.com - The dollar was on track to snap a three-day losing streak against its rivals Tuesday, shrugging off weak U.S. jobs data as sterling faltered ahead of a UK parliamentary debate on Brexit.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.24% to 95.46.

The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in November declined to about 6.9 million, missing expectations of 7.1 million.

The weaker job openings print did little to sway investor expectations that the U.S. labor market remains robust as data last week showed the economy created more jobs than expected in December.

The dollar was also supported by a fall in Treasury prices, which trade inversely to yields, even as analysts said U.S. government bond yields have likely peaked.

Goldman Sachs cut its year-end projection for the 10-year Treasury yields by 50 basis points to 3%, while Bank of America also trimmed its forecasts on the 10-year yield to 3%.

The pound, meanwhile, succumbed to Brexit uncertainty as traders seemingly took some profits off the table ahead of a debate in the UK parliament on Prime Minister Theresa May’s Brexit withdrawal agreement. The vote on the agreement is slated for Jan. 15.

GBP/USD fell 0.48% to $1.2717.

The EUR/USD lost 0.26% to $1.1445, with the latter coming under pressure as data showed German industrial output unexpectedly fell in November, raising concern the country may be heading for a technical recession in the fourth quarter of 2018 after contracting in the third.

USD/CAD fell 0.05% to C$1.3286 as oil prices continued their bullish start to year, with WTI futures up more than 2% ahead of API inventory data due later Tuesday.

USD/JPY fell 0.03% to Y108.67 owing to waning demand for safe-haven yen on the back of investor optimism that the latest round of U.S. and China trade talks could pave the way to a deal.

-- Reuters also contributed to this report.

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