Dollar Touches Two-Month High versus Yen as Market Awaits Jobs, Service Sector Data

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Dollar Touches Two-Month High versus Yen as Market Awaits Jobs, Service Sector DataThe dollar surged to its highest level in 10 weeks versus the yen before U.S. releases reports on Thursday and Friday that show how services industry and job growth rose in March.

The greenback also advanced against most of its 16 major peers as market speculated the reports will push the Federal Reserve to raise the interest rates.

“If we get another strong non-farm payrolls report, that could be critical,” Kathleen Brooks, a London-based research director of Europe at Forex.com told Bloomberg. “If we get strong payrolls and a dovish Draghi, which really suggests the interest-rate differential is going to be on the dollar’s side. We could see a sharper pullback in the euro.”

The dollar rose 0.1 percent to 103.95 yen as of 11.09 a.m. London time, which saw it climb as much as 104.07, its highest level since January 23. However, the dollar remained slightly unchanged at $1.3764 after earlier surging 0.2 percent on Wednesday. The euro was trading at 143.07 yen.

A survey by Bloomberg forecasts that the Institute for Supply Management will announce that the U.S. non-manufacturing index in March rose to 53.5, up from 51.6 in February. It also estimates the Labor Department will say 200,000 new jobs were created last month, up from 175,000 in February.

The Bloomberg Correlation-Weighted Index, which monitors 10 currencies of developed countries, showed that the dollar has surged 0.8 percent in the last six months. This is in contrast to the euro, which has risen 2 percent; while the yen has so far plunged 6.4 percent.

The Bloomberg Dollar Spot Index remained slightly unchanged at 1,018.12 after earlier surging to 1,018.51, its steepest level so far since March 25.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com