The Dollar is stable for more than a week low; eyes on U.S. jobs data

© Reuters. Illustration photo of a US Dollar-based

By Masayuki Kitano

SINGAPORE (Reuters) — The dollar held steady versus a basket of currencies on Friday, as focus shifted to U.S. jobs data, with President Donald Trump, the nomination of Federal Reserve Governor Jerome Powell to be the next Fed Chairman will come as no surprise.

Trump on Thursday tapped Powell to lead the U.S. Central Bank, breaking with precedent, the Yellen by the refusal of the incumbent, Janet a second term, but a continued signaling leadership of its prudent monetary policy.

Trump, the decision was in line with what is expected by the market participants, and the dollar was limited reaction to the news showed.

The dollar index last stood at 94.696 (DXY), drawn from a one-week low of 94.411 set on Thursday.

The greenback had slipped on Thursday after Republicans in the US house of representatives published proposals for the revision of the tax code.

The Republicans called for the drastic reduction in the Corporation tax rate to 20 percent from 35 percent, cut the tax rates for companies and foreign profits, and individuals and families. Congressional passage of the legislation, however, was by no means certain.

While the contents of the tax reforms seem to be positive for the dollar, there is still uncertainty about how quickly it can be implemented, said Stephen Innes, head of the trade in the Asia-Pacific region for Oanda in Singapore.

«This could be quite a lengthy process,» said Innes, adding that U.S. jobs data will be due out later on Friday, a short-term focus for the dollar.

Against the yen, the dollar 0.1 percent eased to 113.94 yen , trading below a 3-1/2-month high of 114.45 yen set last Friday. The Euro held steady at $1.1659 .

Sterling nursed losses after suffering its biggest one-day case against the dollar since June on Thursday, as the Bank of England interest rates for the first time increases in more than a decade, but said it foresees only a gradual increase.

Sterling held steady at $1.3056 , after he fell from 1.4 percent on Thursday. The BoE voted 7-2 to increase its benchmark discount rate to0.50 percent from 0.25 percent, but said it expected only «verygradual» still further increased.

The Australian dollar slipped 0.3 percent to $0.7689 , flat under pressure, after data showed that Australian retail sales in September, coming in below expectations for an increase of 0.4 percent over the month.

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