© Reuters. Dollar gains in Asia
Investing.com — The us dollar gained in Asia on Friday, with the euro and the pound down on the concerns about Brexit and the markets were looking for signs of President Donald Trump may soon be the name of the next Fed chief.
USD/JPY exchanged at 113.26, up 0.64%, while AUD/USD traded 0.7838, down 0.52%. EUR/USD down 0.34% at 1.1812 and the GBP/USD eased 0.36% to 1.3112.
The U.S. dollar index jumped the measures the greenback’s strength against a trade-weighted basket of six major currencies, 0.35% 93.34.
Reports indicate the British Prime Minister Theresa May is a shipwreck in discussions with EU politicians and their own party inc rafting the country’s withdrawal from the European Union, although they did receive a good word from Chancellor Angela Merkel.
«In contrast to how it is represented in the British press, my impression is that these talks are progressing, step by step,» Merkel told reporters, the dismissal of suggestions by some in the UK that the talks are cancelled, as «absurd.»
Overnight, the dollar fell sharply, adding to earlier losses, following a decline in bond yields, after a report suggested that Federal Reserve Governor Jerome Powell leads the race for the succession of Janet Yellen as the next Fed Chairman.
Powell is the leader, the Chairman of the US Central Bank after its President, Donald Trump closed a series of meetings with the five finalists Thursday, three government officials said, according to Politico report released Thursday.
Powell is widely regarded as the least radical candidate — apart from the Yellen — in comparison to his colleagues on the shortlist to head the Federal Reserve in February.
On Thursday, the dollar of the major currencies facilitated from session lows against a basket after better-than-expected economic data, which raised manufacturing and jobs sentiment on the US economy.
The Philadelphia Fed said on Thursday that its manufacturing index rose to a reading of 27.9 this month, from 23.8 in September, beating economists forecast a value of 22.
The U.S. labor Department reported Thursday that initial claims for unemployment benefits decreased by 22,000 to a seasonally adjusted 222,000 for the week ended Oct. 13, beat to reduce the forecasts of a 4,000.
The duo’s upbeat economic reports eased selling pressure in the greenback following a rise in the euro as expectations that the European Central Bank announced plans to taper monetary stimulus overshadowed a political meeting in the next week, the geopolitical uncertainty in the region.
Spain’s Central government said on Thursday it will suspend Catalonia’s autonomy would push for and impose direct rule after the Catalonia-leader Carles Puigdemont to be threatened with a formal Declaration of independence, when Madrid refused to engage in talks.
The euro recovered from an initial sell-off as market participants played down the impact of the continuing political unrest in Spain.
GBP/USD fell on the back of economic data showing that retail sales growth fell in September as subdued wage growth continues to weigh on the consumer.