Dollar Gains as Jobs Report and Stock Volatility Shape Trading
The US dollar strengthened broadly on Friday, reaching its highest level against many G10 currencies since Tuesday’s midterm elections, as traders awaited the monthly jobs report. The euro and sterling held small gains, with the euro trading within Wednesday’s range and setting its session low near $1.1200 before options expired. A sharp drop in US equities, which pushed the Nasdaq Composite below its 200-day moving average for the first time since April, cast a pall over market activity. The jobs report competes with unsettled equity markets to drive the greenback’s direction. Author Marc Chandler, a 40-year capital markets veteran, notes the dollar’s strength reflects election fallout and investor caution amid volatile trading conditions.