News: CBA FOREX-Dollar firms after U.S. labor data suggests more rate hikes

	  U.S. labor market still strong; Q4 labor costs revised 

higher

	  Fed's Bostic: raising rates 'slow and steady' appropriate 

action

	  Price rises ease in euro zone in February 

	  Investors see ECB key rate at 4.1% at year-end 

(Adds comment, fresh prices)

The dollar strengthened on Thursday after unemployment claims pointed to a still strong U.S. jobs market and other data showed growing labor costs, indicating the Federal Reserve has further to go in raising interest rates to tame inflation.

The yield on two-year Treasury notes US2YT=RR , which are sensitive to interest rate expectations, shot to levels last seen in July 2007 as the market perceives the Fed will raise rates further to curb rising consumer prices.

"This move higher that you're seeing in U.S. rates is not happening in isolation," said Alvise Marino, macro trading strategist at Credit Suisse in New York.

"Similar developments are happening in the rest of the world, in particular in Europe, mostly notably, where the inflation data keeps on surprising relatively strong," he said.

Atlanta Fed President Raphael Bostic said on Thursday that the U.S. central bank

was ready to keep lifting rates

higher if inflation doesn't slow and was still mulling how recent, stronger-than-anticipated inflation data might shape Fed policy.

The impact of higher rates on the economy may only begin to "bite" in earnest this spring, an argument for the Fed to stick with "steady" quarter-point rate increases, Bostic said.

"There's more and more of a concern that incoming data is revealing that the Fed might be a little bit behind the curve than maybe they expected heading into this year," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto.

Futures edged higher, with the market pricing a peak rate climbing to 5.493% in the fed funds by September, before easing a bit later in the session to 5.447%. FEDWATCH

The number of Americans filing new claims for unemployment fell again last week, pointing to a still strong jobs market. Another Labor Department report showed labor costs grew much faster than previously estimated in the fourth quarter.

The euro slid on data that showed inflation in the euro zone was not as high as investors had feared but remains elevated. Inflation eased to 8.5% from 8.6% in January on lower energy prices.

The dollar index =USD , a basket of major trading currencies, rose 0.623%, while the euro EUR= fell 0.71% to $1.0589.

The market's reaction to the euro zone data was muted at first following the euro's EUR=EBS 0.9% rise against the dollar on Wednesday, its biggest daily gain in a month, after data showed prices in Germany rose more than hoped last month.

Investors now see the ECB's 2.5% deposit rate rising by a combined 100 basis points in March and May, then to around 4.1% at the turn of the year. Markets have priced in an extra 50 basis points of hikes in just the past month.

Policymakers were split in February on the type of signal they should send about the ECB's next rate move, accounts of the central bank's meeting on Feb. 2 showed on Thursday.

Sterling GBP=D3 was held back by remarks from Bank of England Governor Andrew Bailey, who said "nothing is decided" on future rate increases, which led traders to trim bets on higher rates. Sterling GBP= traded at $1.194, down 0.76% on the day.

The Japanese yen weakened 0.44%, while the Australian AUD=D3 and New Zealand dollars NZD=D3 moved lower after strong gains on Wednesday driven by Chinese manufacturing data.

The offshore Chinese yuan rose 0.70% to $6.9265 per dollar. Investors are looking ahead to China's National People's Congress meeting, which begins on Sunday, for guidance on policy support for the post-COVID recovery.

Bitcoin BTC=BTSP fell 0.81% to $23,442.00 after shares of Silvergate Capital Corp SI.N fell more than half when the crypto-focused bank delayed its annual report and said it had sold additional debt securities.

Currency bid prices at 3:24 p.m. (2024 GMT)

 Description	  RIC		 Last	   U.S.  Pct Change	 YTD Pct	   High Bid	Low Bid 
										 Clos				  Change					
										 e											   
										  Pre											
										 viou											
										 s											   
										  Ses											
										 sion											
 Dollar index	  =USD	   104.9700   104.  +0.58%		 1.430%		+105.1800   +104.3300 
										 3800											
 Euro/Dollar	   EUR=EBS	$1.0597	$1.0  -0.68%		 -1.10%		+$1.0672	+$1.0577 
										 670											 
 Dollar/Yen		JPY=EBS	136.7450   136.  +0.38%		 +4.29%		+137.0900   +136.0300 
										 2200											
 Euro/Yen		  EURJPY=	144.90	 145.  -0.27%		 +3.28%		+145.5600   +144.7800 
										 29											  
 Dollar/Swiss	  CHF=EBS	0.9415	 0.93  +0.21%		 +1.84%		+0.9439	 +0.9395 
										 98											  
 Sterling/Dollar   GBP=D3	 $1.1945	$1.2  -0.67%		 -1.23%		+$1.2035	+$1.1924 
										 025											 
 Dollar/Canadian   CAD=D3	 1.3599	 1.35  +0.05%		 +0.37%		+1.3641	 +1.3586 
										 92											  
 Aussie/Dollar	 AUD=D3	 $0.6731	$0.6  -0.41%		 -1.25%		+$0.6766	+$0.6707 
										 759											 
 Euro/Swiss		EURCHF=	0.9978	 1.00  -0.44%		 +0.84%		+1.0041	 +0.9975 
										 22											  
 Euro/Sterling	 EURGBP=	0.8871	 0.88  +0.08%		 +0.31%		+0.8891	 +0.8857 
										 64											  
 NZ				NZD=D3	 $0.6220	$0.6  -0.57%		 -2.02%		+$0.6257	+$0.6199 
 Dollar/Dollar						   257											 

 Dollar/Norway	 NOK=D3	 10.4400	10.4  +0.32%		 +6.39%		+10.4930	+10.3900 
										 080											 
 Euro/Norway	   EURNOK=	11.0618	11.0  +0.01%		 +5.41%		+11.1216	+11.0599 
										 610											 
 Dollar/Sweden	 SEK=	   10.5083	10.4  +0.13%		 +0.97%		+10.5345	+10.4310 
										 300											 
 Euro/Sweden	   EURSEK=	11.1365	11.1  +0.13%		 -0.12%		+11.1641	+11.1257 
										 224											 
	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
World FX rates	https://tmsnrt.rs/2RBWI5E 

Jobless claims https://tmsnrt.rs/3y5USkA US jobs US jobs https://tmsnrt.rs/3ERYkmt

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