The dollar advanced on Thursday as the market awaited data on U.S. payrolls on Friday, which may point to an improving labour market.
The dollar advanced 0.02 percent to 102.26 yen. It also rose 0.03 percent to $1.3869 in a short trading week due to the holidays this week in various financial markets. The dollar index reversed its earlier losses after it inched 0.06 percent higher in mid-afternoon trading in New York.
Economists surveyed by Reuters expect the economy to have absorbed 210,000 nonfarm payrolls in April, up from 192,000 a month earlier. The jobless rate is expected to decline to 6.6 percent, the lowest level in five years.
The Institute of Supply Management revealed that its measure of U.S. manufacturing activity jumped to the highest level since last December. A separate report indicated that consumer spending in the world’s largest economy rose the most in 4 ½ years over the period as the economy shakes off the winter lull.
“It appears that any jobs data weakness seen at the turn of the year was, yes, weather related,” Christopher Vecchio, a currency analyst at DailyFX, told Reuters.
The sterling advanced 0.13 percent to $1.6892, after earlier touching its highest level in nearly five years of $1.6921. The pound’s advance was fuelled by favorable U.K. manufacturing data in April that exceeded market expectations.
A separate report showed that annualized growth in house values in U.K. jumped the highest since the onset of the global financial crisis. Home prices in U.K. grew 1.2 percent from March to 183,577 pounds, according to the Nationwide Building Society. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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