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Hannibal X 8 years, 2 months ago.
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The U.S. Dollar Set for Biggest Weekly Loss Since 2009
The dollar is headed for its biggest weekly decline since 2009, and Friday’s payrolls report is unlikely to offer much in the way of redemption.The U.S. currency has fallen against all of its Group-of-10 peers this week amid signs traders are starting to pull back from a policy divergence trade that proved a winner for much of the past year and a half. The tide is turning, with the odds of a quarter-point increase in Federal Reserve interest rates by January 2017 falling to less than 50 percent.
The chances are receding as the world’s largest economy shows it’s not immune to the turmoil stalking global markets. U.S. employers created fewer than 200,000 jobs last month for the first time since September, economists surveyed by Bloomberg predict before a government report.
“It’s not that the U.S. labor market is bad, but it’s just that if you’ve been improving for so long you can’t keep improving at the same level,” said Stuart Bennett, London-based head of G-10 currency strategy at Banco Santander SA. “It’s the same for the dollar. After rising so fast you can’t keep rising.”
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