Investing.com – The dollar rose against its rivals Tuesday, supported by upbeat labor market data and a weaker yen, as easing trade-war fears continued to keep a lid on demand for safe-haven currencies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.16% to 93.95.
The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in May came in at about 6.64 million, beating expectations for 6.58 million.
The uptick in job openings follows a bullish nonfarm payrolls report Friday, showing the U.S. economy had created more jobs than forecast in June, strengthening calls for further increases in U.S. interest rates.
The odds of a fourth rate hike at the Federal Reserve’s December meeting has increased to 54%, up from about 44% last week, according to Investing.com’s Fed Rate Monitor Tool.
The dollar also added to gains against safe-haven currencies like the yen and the Swiss Franc as the flight-to-safety trade has been halted somewhat by easing trade-war fears.
USD/JPY rose 0.42% to Y111.29, while USD/CHF rose 0.09% to 0.9923.
USD/CAD rose 0.08% to C$1.3125 but remained below its intraday high of C$1.3146 amid expectations the Bank of Canada will increase interest rates Wednesday.
GBP/USD fell 0.07% to $1.3250 as manufacturing activity unexpectedly fell, and concerns over UK government turmoil weighed. But losses in sterling were limited, by an in-line GDP print, raising expectations for a Bank of England (BoE) August rate hike.
“A (BoE) rate increase in August is now more likely,” RBC Capital Markets said Tuesday, following data showing UK GDP grew 0.3% in May.
EUR/USD fell 0.16% to $1.1732, pressured by data showing ZEW German economic sentiment fell short of economists’ forecasts.
Forex – Dollar Pushes Yen Lower as Trade-War Fears Ebb
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