Dollar Poised for Weekly Gain as Traders Eye Iran Talks, US Jobs Data
The US dollar is poised to end the week on a high note as traders assess the prospects for an Iran peace deal and digest Friday's US jobs data.
Tensions surrounding the deal between Tehran and Oman have boosted the dollar's safe-haven appeal, sending yields higher in Treasury markets. A Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh suggested that a September interest rate hike may be on the table, depending on incoming data.
The US nonfarm payrolls report is due later on Friday, with economists predicting an 80,000 increase in jobs and a steady unemployment rate of 4.2 per cent. The dollar index has risen marginally to 99.954, up around 0.1 per cent for the week.
Brent crude prices have increased by $1.31 to trade at $83.80 per barrel, amid heightened inflation risks and uncertainty surrounding the Iran peace deal. Kristina Clifton, an economist at Commonwealth Bank of Australia, said USD was supported by higher oil prices following news that a US-Iran deal to reopen the Strait of Hormuz is further away than hoped.