Dollar Rises Against Euro as Jobs Data Seen Giving Fed a Steer

  • Bloomberg dollar index rises from near lowest in a year
  • Data show U.S. employers added 200,000 jobs in April: survey

The dollar rose for a third day against the euro as traders awaited a Friday jobs report that may give investors a better idea of whether the Federal Reserve will raise interest rates next month.

A gauge of the greenback versus 10 major peers extended its advance from its lowest level in a year. U.S. employers created 200,000 jobs in April, economists surveyed by Bloomberg predict, which would be the third month at or above that threshold.

The dollar has been supported this week as two regional Fed presidents said that a rate increase should be considered at the central bank’s June gathering. Yet the picture was muddied as a report from the ADP Research Institute Wednesday showed jobs growth fell short of economists’ forecasts last month.

“The monetary policy divergence theme, although dying slowly, isn’t quite dead yet,” said Marshall Gittler, head of investment research at FXPRIMUS Europe in Limassol, Cyprus. “Although the ADP report yesterday was disappointing, other U.S. data was good: the trade deficit narrowed, the ISM non-manufacturing index surprised on the upside, as did the employment component.”

The dollar strengthened 0.7 percent to $1.1402 per euro as of 13:34 p.m. New York time. The Bloomberg Dollar Spot Index rose 0.4 percent to 1,174.72, up from as low as 1,150.22 on May 3.

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