Dollar Gains on Pound, Euro
The beaten-down greenback was a bit higher against the world's other major currencies Monday, as traders bet the U.S. government would release a favorable employment report later in the week.
Euros were trading for $1.423, down slightly from $1.4259 late Friday. The yen fell to 115.9 against the dollar from 114.9 last week. British pounds were selling for $2.0432 vs. $2.0461 previously.
"This week's U.S. jobs report is likely to pick up," writes the foreign exchange strategy team at Brown Brothers Harriman in New York in a research report.
A strong jobs report would reflect a firm U.S. economy and would reduce the chances of another quick cut in interest rates by the Federal Reserve.That factor is combining with a change in market sentiment toward the European Central Bank's interest rate strategy, BBH says. In particular, the feeling seems to be that the ECB won't hike interest rates any time soon and so the rally in the euro may need to take a breather. The value of the euro has rallied from around $1.30 in January to an all-time high near $1.428 late last week. In other currency market action, the Canadian loonie was firmer, with U.S. dollars buying C$0.9927, compared with C$0.9945 in the prior trading session. The Australian dollar was stronger, as well. The PowerShares DB G10 Currency Harvest (DBV), which tracks the value of multiple currencies, was rising 0.8% in recent activity.
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