- Traders reassess pace of U.S. recovery on weak jobs data
- Bitcoin set for biggest weekly advance since turn of year
- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
The dollar headed for its first losing week in three as new signs of weakness in the U.S. jobs market dented investor expectations about the pace of economic recovery from the pandemic.
Bitcoin hit a new all-time high of $49,000 on Friday after BNY Mellon became the latest firm to embrace cryptocurrencies, saying it will form a new unit to help clients hold, transfer and issue digital assets.
"With names like BONY getting in, it’s going to lay the groundwork for even more mainstream adoption of bitcoin," said Jeffrey Wang, head of Americas at crypto finance service provider Amber Group.
"Medium term, the momentum is very strong and the market is going to want to test $50,000."
The dollar remained on the back foot on Friday in Asia, pinned near two-week lows, after the release of weaker-than-expected weekly U.S. jobless claims data the previous day.
That added to recent concerns that the dollar's previous rally had priced in too fast a pace of rebound for the U.S. economy.
The dollar index =USD edged up less than 0.1% to 90.49 in holiday-thinned trade due to the Lunar New Year, and was on track to fall 0.6% for the week.
There has been a divergence in views among traders this year over just how U.S. President Joe Biden's planned $1.9 trillion fiscal stimulus package will affect the dollar.
Some see it as bolstering the currency as it should speed a U.S. recovery relative to other countries, while others reckoned it would feed a global reflation narrative that should lift riskier assets at the dollar's expense.
"The U.S. economy will outperform most thanks to fiscal stimulus and faster vaccine deployment, but ongoing reflationary fiscal and monetary policy will leave DXY on a sustained medium term bear trend," Westpac strategists wrote of the dollar index in a client note.
The euro EUR=EBS slipped less than 0.1% to $1.2122, consolidating for a third day near that level as it headed for a 0.6% weekly advance.
The dollar was mostly flat at 104.795 yen JPY=EBS , down 0.5% from the end of last week.
Bitcoin BTC=BTSP last traded 1.7% weaker at $47,170 after trading at a record high of exactly $49,000.00 on Bitstamp.
The world's most popular cryptocurrency is on course for a nearly 22% weekly advance, its biggest since the period ended Jan. 3.
======================================================== Currency bid prices at 2:11PM (511 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR=EBS $1.2122 $1.2133 -0.09% -0.79% +1.2135 +1.2119 Dollar/Yen JPY=D3 104.7950 104.7300 +0.07% +1.46% +104.8270 +104.7850 Euro/Yen EURJPY= 127.04 127.05 -0.01% +0.09% +127.1400 +127.0200 Dollar/Swiss CHF=EBS 0.8905 0.8898 +0.08% +0.66% +0.8908 +0.8902 Sterling/Dollar GBP=D3 1.3790 1.3816 -0.17% +0.96% +1.3815 +1.3786 Dollar/Canadian CAD=D3 1.2721 1.2703 +0.16% -0.09% +1.2727 +1.2695 Aussie/Dollar AUD=D3 0.7743 0.7755 -0.14% +0.67% +0.7755 +0.7736 NZ NZD=D3 0.7216 0.7227 -0.14% +0.50% +0.7231 +0.7210 Dollar/DollarAll spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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