- MarketPulse - https://www.marketpulse.com -

Solid Bets on U.S. Dollar before Jobs Data

Bullish option bets on the dollar against the yen climbed to a two-year high relative to bearish wagers before U.S. data forecast to show jobs growth picked up in the world’s largest economy.

The overnight risk-reversal rate jumped 1.2 percentage points to 1.76 percentage points, set for the highest close since June 2012. The greenback has still declined against most of its major peers this week after the Federal Reserve reinforced its commitment to record-low borrowing costs. Emerging-market currencies gained for a fourth day yesterday as volatility slid to the lowest in almost seven years, boosting the allure of higher-yielding assets.

“A good number on the U.S. jobs report is likely to result in dollar buying,” said Masato Yanagiya, the head of foreign exchange and money trading in New York at Sumitomo Mitsui Banking Corp., a unit of Japan’s second-biggest financial group by market value. “Markets are seeing an upside risk to the employment data.”

Bloomberg [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.


Latest posts by marketpulsefxstaff (see all [4])