Fundamental Comment

Dollar set for weekly gain ahead of US NFP

Dollar set for weekly gain ahead of US NFP

The dollar rose during Friday’s trading, moving towards a weekly gain, amid large demand from investors to safe havens due to the large spread of coronavirus around the world.

As of 07:55 GMT, the U.S dollar index, which measures the performance of six major currencies against the greenback, traded at 100.72, resuming its good performance for a third straight session, noting that the highest level recorded during the session was at 100.77.

The dollar is heading to weekly gain of 2 percent, yet it may retreat if the U.S. non-farm payrolls came worse than forecast.

Investors are looking forward to the US jobs report due today amid expectations that 100,000 jobs will be lost in March.

Data released on Thursday showed that 6.6 million Americans applied for unemployment benefit last week, reflecting the impact of lockdowns on the labor market.

Service activity data in the United States is scheduled to be released later today.

Concerns continue about the coronavirus that has infected most of the world -181 countries - after more than 1 million cases were infected and 53,000 people died.

However, U.S. stock indexes rose at the close of trading on Thursday, supported by higher oil prices, where the Dow Jones Industrial Average rose 2.3 percent, the S&P 500 rose 2.3 percent, and the Nasdaq Composite rose 1.7 percent.

The euro, on the other hand, widened its losses and extended its drop for a fifth straight session, after a report showing that eurozone business activity reported the worst monthly fall ever in March.

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