This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dollar Softens; Euro Continues Recovery

The U.S. dollar rally continued to soften Friday as the market awaits the November jobs report. The market expects a 150,000 increase in nonfarm payrolls with a 158,000 increase in private payrolls.

With the positive upside surprises in the ADP and the employment components of the ISM reports, we feel this morning's report poses some upside surprise risk which most likely would bolster risk appetite.

The euro continues to recover amid further talk of European Central Bank bond buying, which saw further narrowing in eurozone peripheral spreads. The euro cleared the $1.3250 hurdle with additional support from another good economic data release -- retail sales -- and is set to test the Monday high of $1.3300.

Meanwhile, sterling rallied on the back of the rising risk appetite, along with a run of improvement in U.K. economic data releases, with a run up to $1.5683 subsequent the PMI release.

The yen was mostly quiet in the Asian session as most market participants were sidelined ahead of the U.S. jobs report this morning. As such, a report in line in consensus may stoke a rise in U.S. bond yields, increasing the yield advantage over the yen, thus strengthening the dollar.

Elsewhere, the net change in Canada's employment was below consensus and despite the drop in the unemployment rate -- driven by a drop in labor participation as opposed to job creation -- weakened the Canadian dollar. The loonie fell back to $1.003 following the print.

European sovereign bond yields continued to decline with Ireland and Portugal leading the way with a large drop in the 10-year yields as anecdotal evidence suggests that the ECB continues to purchase periphery debt. Ireland's 10-year yield, for instance, is down 31 basis points with Portugal's yield down 23 basis points. Likewise, Spain's 10-year yields are down 12 basis points followed by a 4 basis points decrease in Italy's yields.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.31 0.48%
FB $92.80 -1.29%
GOOG $645.44 0.62%
TSLA $241.46 -1.91%
YHOO $30.96 0.34%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs