The USD index slipped to mid-January lows amid positive risk sentiment
Wall Street stocks rose on Thursday, staying bullish ahead of the release of the February jobs report. The Nasdaq Composite added 1.5% as tech stocks took the lead during the session, while the Dow Jones gained about 0.3%. The S&P 500 rallied more than 1% to hit another record closing high. Fed Chair Powell said that the central bank is not far from delivering rate cuts, adding that the bank is just waiting for additional data to confirm inflation is cooling. On the data front, jobless claims came in unchanged at 217,000 for the week ending March 2.
Asian equities were mostly higher on Friday, with Japan’s benchmark Nikkei 225 gaining 0.25%. Sydney’s S&P/ASX 200 jumped 1.07% to hit a new record high, South Korea’s Kospi surged 1.24%. Hong Kong’s Hang Seng rose 0.76%, while the Shanghai Composite gained 0.61% despite no fiscal stimulus measures from Beijing. On the data front, household spending in Japan fell 2.1% month-on-month in January versus the expected increase by 0.4%.
In Europe, shares were mixed early Friday even as Asian benchmarks rose after US stocks climbed to records. The Stoxx 600 was up 0.1% in early deals after adding more than 1% during the previous session. Now, investors are digesting the ECB’s updated inflation forecast and looking ahead to fresh U.S. jobs data. US stock index futures look set to trade mixed in a narrow range after yesterday’s rally.
The USD index slipped to mid-January lows earlier on Friday before bouncing marginally. The dollar stayed pressured as Powell’s comments sent benchmark 10-year Treasury yields to a one-month low. Focus is now on US employment data, with the consensus forecasting that 200,000 new jobs were created in February, well down from January’s 353,000. After dipping to the 102.70 zone, the greenback has settled above 103.80 in early European deals, struggling to regain the 104.00 mark ahead of a key jobs report that will set fresh direction for the buck.
