* Dollar index heads for worst week since August
* Political worries seen dominating FX market
* Trump election risk to offset any dollar gains on jobs report
The dollar inched up from a four-week low on Friday ahead of the U.S. non-farm payrolls report later in the day but was on track for its worst week in 12, pressured by worries that Donald Trump could win next week's U.S. presidential election.
The greenback has fallen 1.2 percent this week against a basket of major currencies as Democrat Hillary Clinton's lead over Republican rival Trump in polls has dwindled following the re-emergence of a controversy over her private email server.The U.S. currency hit a nine-month high last week as investors bet that the Federal Reserve would hike interest rates later this year, but a Trump victory is seen creating political turmoil, while a Clinton victory is seen as a continuation of the status quo.
"Political uncertainty ... tends to be currency-negative because the markets find it more difficult to work out how things like trade policy and foreign policy are going to play out in the economy," said Rabobank currency strategist Jane Foley."What we do know about Trump is that he favours protectionist policies. And what we know about protectionist policies is that they're likely to be inflationary. That brings on a layer of uncertainty to the Federal Reserve."
Economists polled by Reuters forecast 175,000 jobs to have been added in October, in data due at 1230 GMT. An upbeat jobs report is expected to bolster bets on a December rate hike, which would typically push U.S. yields higher and support the greenback.
Read more - https://www.goldcruderesearch.com/forex.php
* Political worries seen dominating FX market
* Trump election risk to offset any dollar gains on jobs report
The dollar inched up from a four-week low on Friday ahead of the U.S. non-farm payrolls report later in the day but was on track for its worst week in 12, pressured by worries that Donald Trump could win next week's U.S. presidential election.
The greenback has fallen 1.2 percent this week against a basket of major currencies as Democrat Hillary Clinton's lead over Republican rival Trump in polls has dwindled following the re-emergence of a controversy over her private email server.The U.S. currency hit a nine-month high last week as investors bet that the Federal Reserve would hike interest rates later this year, but a Trump victory is seen creating political turmoil, while a Clinton victory is seen as a continuation of the status quo.
"Political uncertainty ... tends to be currency-negative because the markets find it more difficult to work out how things like trade policy and foreign policy are going to play out in the economy," said Rabobank currency strategist Jane Foley."What we do know about Trump is that he favours protectionist policies. And what we know about protectionist policies is that they're likely to be inflationary. That brings on a layer of uncertainty to the Federal Reserve."
Economists polled by Reuters forecast 175,000 jobs to have been added in October, in data due at 1230 GMT. An upbeat jobs report is expected to bolster bets on a December rate hike, which would typically push U.S. yields higher and support the greenback.
Read more - https://www.goldcruderesearch.com/forex.php
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