Dollar Up Against Yen, Euro Ahead of Jobs Data, Sterling Up On U.K. Election

 
   By Hiroyuki Kachi 
 

        The dollar was higher against the yen and the euro in Asia trade Friday on hopes for strong reading in closely-watched U.S. jobs data, while the British pound extended its earlier gains against rival currencies as fears of political instability in the U.K. subsided.
        Around 0450 GMT, the dollar was at Y119.87, compared with Y119.75 late Thursday in New York. The euro was at $1.1216 from $1.1266.
        Investors avoided taking lopsided positions amid a mixture of expectation and anxiety ahead of U.S. jobs data later Friday. But weekly initial jobless claims overnight in the U.S. were strong enough to keep alive expectations for upbeat numbers in the April nonfarm payrolls report, in what may show a rebound from disappointing reading a month ago.
        Because of expectations for good numbers from the jobs report after a poor reading last month, "we would see a pattern of the dollar selling, if lackluster numbers come out," said Marito Ueda, director of FX Prime byGMO.
        But the greenback is unlikely to step out of its recent trading range between Y118-Y121, "unless something very unusual transpires," said Mr. Ueda. Even with disappointing employment figures, the dollar's downside will be well supported by a slew of buy orders being placed below Y119.
        On the flip side, however, the dollar may find it difficult to go beyond Y120.80 only based on good labor data figures, with investors shifting some of their attention to a lack of progress in other parts of the economy such as retail sales, said Mr. Ueda.
        Meanwhile, the British pound extended its earlier gains against its peers after initial bout of buying triggered by exit polls forecasting a win by Prime Minister David Cameron's Conservative Party in the U.K.'s tightly-contested election.
        The pound was at $1.5507 midday after touching as high as $1.5523, its highest since Feb. 26. That compares with $1.5243 late Thursday in New York. It was at EUR1.3825 from EUR1.3533 and Y185.88 from Y182.55.
        Exit polls forecast that the Conservatives would win 316 seats in the U.K. Parliament, suggesting a far stronger showing than months of pre-election surveys that showed them in a dead heat with the main opposition Labour Party. However, the exit polls indicated the Conservatives would be short of an effective majority of the 650-seat House of Commons.
        Among other currency pairs, the euro was at Y134.47 from Y134.87.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.01% at 85.25.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        May 08, 2015 01:32 ET (05:32 GMT)

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