The US dollar fell modestly against the euro, the British pound, the Swiss franc and most global currencies at the end of the first week of November in anticipation of US labor market data.
The US Department of Labor will publish data on unemployment and jobs in October at 3 p.m. Bulgarian time. Analysts polled by Trading Economics on average forecast that the unemployment rate in the United States will remain at 3.8% and the number of new jobs in the US economy will increase by 180,000, after rising by 336,000 in September.
The labor market report is an important factor that can influence the US Federal Reserve’s (the nation’s central bank) view of the future trajectory of monetary policy. On Wednesday, the Fed kept its key interest rate at 5.25-5.5% and promised to take a cautious approach to changing the monetary policy rate.
The Bank of England (BoE) on Thursday kept the main interest rate at 5.25% per annum, which coincided with the forecasts of experts and analysts. The decision to keep the interest rate at the same level was supported by six of the nine members of the Monetary Policy Committee (MPC), three in favor of raising it by 25 basis points (bps).
The MPC’s latest estimates suggest that the BoE is likely to have to maintain its contractionary policy for an extended period of time. Further tightening will be necessary if there are signals of more stable inflationary pressure than currently expected, the Central Bank notes.
The ICE Dollar Index, which tracks the dollar against six major global currencies (euro, Swiss franc, British pound, Japanese yen, Canadian dollar and Swedish krona), was down 0.16% in trading, while the broader WSJ Dollar Index , which includes 16 currencies, fell by 0.09%*.
The euro rose 0.14% to $1.0638 from $1.0623 at the end of the previous session, when the common currency posted a weaker daily gain of 0.1%.
The pound-to-dollar exchange rate edged up 0.04% to $1.2208 from $1.2203 on Thursday.
The Swiss franc also rose, but more, by 0.19% to 0.9043 francs per US dollar.
Against the yen, the dollar was also down 0.11% at 150.28 yen from 150.45 yen the previous day.
*Exchange rates are current as of 11:30 a.m. Bultar time, sources Reuters and Trading Economics.