Dollar drives higher as traders look to Fed clues from U.S. jobs data

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The dollar clung to recent gains on Wednesday as virus woes raised concerns in a market already on edge ahead of U.S. jobs data seen as crucial to the Federal Reserve's monetary policy outlook.

Risk-sensitive commodity currencies had led overnight losses, with the Australian and New Zealand dollars each dropping about 0.7%. The euro fell 0.2% overnight while the safe-havens of Japanese yen and the Swiss franc held steady.

The dollar index rose 0.2% to hit a one-week high overnight and on Wednesday sat roughly in the middle of the range it has found in the wake of the surprisingly hawkish shift in tone from the Fed earlier this month. At the same time traders are wary of a surprise from U.S. economic data, starting with private payrolls later on Wednesday but with the main focus on fuller labour figures due on Friday.

Source: News Formal (newsformal.com)

 

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