The US dollar rose against majors on Friday after the release of the US official employment report. According to analysts, Friday’s jobs numbers were positive for the greenback, bolstering expectations that the Fed would continue to signal a pause in its rate-cutting cycle this week. However, looming US Dec. 15 tariffs continue to overshadow the latest trade optimism. The dollar index measured against a basket of major currencies rose by 0.3% on Friday to close at 97.70 after the report showed that US nonfarm payrolls increased by 266,000 jobs last month, the biggest gain in 10 months. For the week, however, the index lost 0.6%. Meanwhile, the euro declined on Friday. However, week-on-week, it was still higher against the greenback, which was weighed down by concerns over US-China trade relations. The shared currency ended Friday’s session at 1.1059, down by 0.4%. On a weekly basis, the euro gained 0.4%. Meanwhile, cable ended sharply higher last week, posting the highest weekly close since
April as sterling traders grew more confident that uncertainty over Brexit would end soon. The latest opinion polls showed the governing Conservative Party has extended its lead over rivals ahead of this week’s national election. The GBP/USD pair rebounded late on Friday to end at 1.3137. It trimmed daily losses and consolidated a weekly gain of 1.7%, ahead of critical days in the United Kingdom. Back to the US-China trade dispute, the US market is concerned about the Dec. 15 tariffs being enacted, but some analysts don’t think this is going to happen before the end of the year. In addition to a looming deadline for the next wave of US tariffs on Chinese goods, investors’ attention is also on the US Federal Reserve and European Central Bank policy meetings this week, Forex strategists say if Donald Trump decides not to delay tariffs, that would lead to a risk off reaction in markets. They believe tariffs will not go into effect as the talks are ongoing, adding they don’t expect any
“fireworks” from the central bank meetings. Meantime, in the crypto market, Bitcoin price added almost 2% on Friday to close at 7,588.30. For the week, the world’s largest cryptocurrency advanced by 1.7%. Bitcoin investors continue to pay attention to the overall economic panorama, as it is still a major catalyst for worldwide BTC adoption. Elsewhere in commodities, Brent crude oilgained 1.6% on Friday to settle at $64.39 on the New York Mercantile Exchange. For the week, Brent rose by only 0.8%. OPEC+ agreed to raise production cuts another 500,000 barrels a day through March 2020, bringing total production cuts to 1.7 million barrels a day. But there were still many unanswered questions, including how the quota would be allocated, and how long the agreement would last. Meanwhile, US West Texas Intermediate crude futures gained 1.3%, to settle at $59.20 a barrel. For the week, WTI crude advanced by 1.9%. In the meantime, the price of gold tumbled on Friday after a better than expected US jobs report fueled investors’ appetite for risk. February gold futures plunged by 1.2%, to $1,465.10 a troy ounce, the lowest level since Nov. 27.